UK commercial property values unchanged in December 2011
Published on
08/03/2012 16:34:07
The performance of UK commercial property in the final month of
2011 remained unchanged in line with previous months, according to
CBRE's latest Monthly Index.
December followed a similar pattern to previous months with
total returns of 0.5 per cent and no overall movement in capital
values, suggesting market momentum has stabilised in recent
months.
Despite fears of declining market momentum, overall annual
returns of 8.1 per cent have proved relatively healthy in the
circumstances. Central London continues to haul up the nation's
overall values from the doldrums with office and retail warehouse
returns holding up at 0.8 per cent and 0.7 per cent
respectively.
Central London offices and retail warehouses were also the best
performing sub-sectors in 2011 with total returns totalling 12.7
per cent and 9 per cent respectively.
Figures from Outer London and the rest of the UK offices
experienced meagre total returns of 0.1 per cent and 0 per cent.
These areas were also the weakest performing sub-sectors over the
year, with total returns of 4.8 per cent and 3.3 per cent.
David Wylie, head of economics and forecasting at CBRE, said:
"The 8.1 per cent total return for the UK commercial property
market this year was a respectable performance given the broader
economic background, and compares favourably with the other main
asset classes.
"Returns were largely due to income, however, as capital growth of
1.9 per cent over the year was fairly modest, and confined to the
first six months of the year.
"Performance across different parts of the market, and more
importantly across different grades of property, was very skewed in
2011, with strength in Central London offices and prime assets in
particular helping to offset weakness elsewhere."