The real estate advisory firm’s monthly index describes the UK’s property market as having seen steady returns during August but cites central London office space as performing exceptionally well.
Indeed, office space in the heart of the capital performed better than any other sub-sector of the British property market, with returns of one per cent and capital growth of around 0.6 per cent during the period.
Meanwhile, CBRE’s data also shows that returns on outer London office space increased by around half a per cent, while in the rest of the UK they rose by 0.7 per cent.
Head of UK economics and forecasting with CBRE David Wylie commented: “With values up 18.6 per cent from their lows in the middle of last year, investors are looking for more compelling signs of recovery in occupier markets before committing further to the market.
“The significant exceptions to this broader picture are the central London office and retail markets, where there is already evidence of income growth and investor appetite still appears to be strong.”
Office space rental values across the UK were said to have remained virtually unchanged from July through to August, with central London again providing the exception and seeing an increase of around half a per cent.
Editor’s notes: In February 2023, CBRE’s UK Monthly Index recorded that in that month, all property capital values declined 0.5%, whilst industrial and office rental values recorded increases of 0.6% and 0.1% compared to January.