A new report suggests that UK commercial property capital values rose last month and have demonstrated ‘steady performance’ over the course of 2017, particularly on the outskirts of London.
According to CBRE’s latest Monthly Index, commercial property capital values rose by 0.6 per cent in June this year, while rental values across both commercial and residential property increased by 0.2 per cent.
The report suggests that a quarter-end surge from the industrial sector helped to boost the UK’s national average, with industrial sector capital values rising by 1.5 per cent during June 2017 – up from just 0.5 per cent recorded one month previous.
In the first half of 2017 (H1), capital values in the industrial sector rose by as much as 5.8 per cent, while rental values surged by 2.6 per cent.
Overall capital value growth reached 2.5 per cent in H1, with overall rental value growth up by 0.8 per cent.
The office sector also performed well, particularly on the outskirts of London, the report reveals.
Overall, the office sector recorded capital value growth of 2.3 per cent during H1 and 0.4 per cent during June.
Last month, outer London/M25 offices reported capital growth of 0.5 per cent, while offices across the rest of the UK recorded growth of 0.6 per cent, according to the report.
However, rental values in Central London sadly fell by -0.3 per cent.
Miles Gibson, head of research at CBRE UK, said: “June’s results mark the end of H1 2017 and 12 months since the EU Referendum.
“Despite City office rental values falling… overall results paint the picture of steady property performance,” he said.
“Industrials in particular continue to perform well and provide a boost to overall performance.”