According to CB Richard Ellis’ latest UK Monthly Index, the commercial property market in the UK is flying in the face of slowdown expectations.
The research found that the sector continued to show resilience in September, which highlighted capital growth of 0.3 per cent and a total return of 0.8 per cent - pointing to a strong overall result for this year as a whole.
The best performing sector was offices, with capital growth of 0.6 per cent and total returns of 1.1 per cent. Retail sectors were also shown to be doing well, with standard retail and retail warehouses growing 0.3 per cent and shopping centre values growing by 0.2 per cent in the month.
Nick Parker, Senior Analyst with CB Richard Ellis, said, "UK office markets are being driven by the out-performance in Central London offices. This is where investor interest is most focussed, and where there are still signs of downward yield pressure.
"There is very little evidence that markets outside of London are likely to see any more significant upside in pricing for the time being.
"UK commercial property values have grown by 7.9 per cent during 2010 and by 19 per cent since June 2009," he added.
