Analysts have suggested that 2018 is shaping up to be an exciting year for UK commercial property, after a new report found that the sector performed relatively well in January.
CBRE’s latest Monthly Index demonstrates that commercial property rental values rose by 0.1 per cent month-on-month in January.
While this rise is admittedly small, commentators have been keen to note that the outlook looks good over the coming months – particularly as growth appears to be robust in many subsectors of the market.
CBRE’s report indicates that capital growth was particularly strong in the industrial sector last month, especially in London and South East England, which welcomed capital growth of 0.7 per cent.
In fact, the South East in general performed well between December and January, with overall rental values up by 0.4 per cent in comparison with an average of just 0.1 per cent elsewhere in the UK.
On a national basis, overall capital value growth slowed from 1.0 per cent in December to just 0.2 per cent in January.
However, Miles Gibson, Head of Research at the CBRE, said that it was always “highly unlikely” that January’s figures would beat December’s abnormally “impressive results.”
Going forward, he suggested that the outlook for commercial property looked good, following a “typically slow and steady start to the year.”
He said: “With crunch time for Brexit approaching and a slightly weaker economic outlook, the year ahead will undoubtedly have its fair share of excitement.”
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