Investors in the UK’s commercial property market have something to cheer about. The latest CBRE Monthly Index has revealed that the commercial property market in the UK remained stable in January. This should put to rest unnecessary speculations over the future of the commercial property market in the wake of economic and political developments in the country last year.
The rental values of commercial properties increased by 0.1 per cent across the UK last month. The industrial sector continued to show an impressive growth with the rental values increasing by 0.3 per cent. At the same time, January also saw an appreciation in capital values of commercial properties.
CBRE noted that the highest capital value growth came from the London/M25 Offices, which witnessed an increase of 0.6 per cent. The Retail Warehouse sector registered a capital value growth of 0.2 per cent month-on-month. All these findings indicate that the commercial property market remains resilient at the beginning of 2017. They also show the direction in which the commercial property market in the UK is headed.
The fundamentals of the UK property market are strong and continues to attract investors in the commercial property market. The market will continue to remain stable offering returns to investors in the long-term.
Following a positive end to a turbulent 2016, January saw a relatively solid start to 2017, with industrials continuing to lead the way: Miles Gibson, Head of UK Research at CBRE