Central London remains a key target for investors – CBRE
The robust Central London property market continued in May to bolster the overall performance of the CBRE Monthly Index. Capital growth on property in Central London was 0.4% last month, with total returns at 0.7%, up from 0.1% and 0.5% in April. At the All Property level, returns were negative in May at –0.1%, after +0.2% in April.
Significant investment in the West End property market, which experienced capital growth of 0.7% last month, was the main reason for the strong performance from the Central London market, which remains the best-performing subsector in the UK, CBRE said.
The flat overall performance was partly due to the subdued readings for the retail sector, where returns were down 0.5% and values dropped 0.9%. Offices and industrial property each saw total returns of 0.2% for the month.
“Overall, it was an outward movement in yields that drove a capital decline of 0.6% at the All Property level, with sentiment now very much in the buyer’s favour amid the uncertain economic climate,” the firm added.
Nick Parker, senior analyst of economics & forecasting at CBRE, said that the slowing values were no surprise but added that the UK remained in a strong position compared with the eurozone. “The UK is to Europe what Central London offices are to the wider UK property market – a safe haven for property investors and an ongoing destination for global capital,” he noted.
