Market takes a breather
The rapid bounce-back in commercial property pricing at the end of last year has run its course, giving way to “more sedate” growth in recent months, says the IPD in its latest UK Monthly Index report.
The 0.8% rise in capital values recorded for April was half the level seen in March, the IPD says, and the softest level since positive growth returned last August.
Malcolm Hunt, head of UK client services at the IPD, points out that the UK market has delivered positive capital growth of 14% over the past 10 months, with the retail sector performing most strongly at 17.2% growth, followed by offices with 12.0% and industrials with 10.1%.
“The twin drivers of capital growth – yield compression and rental growth – were mixed: while initial yields dropped by a modest 10 basis points for the fourth consecutive month, negative rental growth marginally worsened – from -0.1% in March to -0.2% last month,” it noted.
