Commercial property capital values increased for the third consecutive month in July 2024 by 0.1%, supported by continued and steady growth in rental values. According to CBRE’s latest UK Monthly Index. all-property rental values increased by 0.3%, and total returns reported 0.5% growth.
Capital value performance was modest for the retail sector in July, following consecutive months of strong performance. Capital values increased by 0.1% throughout the month, with Shopping Centres recording the strongest growth (1.2%), while Standard Shop capital values fell by 0.6%. Rental values across the sector increased by 0.1% in July, driven again by Shopping Centres (0.9%) and Retail Warehouses (0.2%). Month-on-month total returns were 0.1% for the retail sector throughout July.
Office capital values fell by 0.2% throughout July, however the rate of decline slowed. Central London capital values remained flat throughout the month, while Outer London/M25 (-0.1%) offices and Rest of UK office (-0.3%) capital values posted small declines. Office rental values increased by 0.2% in July. Both Central London and Rest of UK Office rental values rose by 0.2% over the month. Office total returns were 0.3% for the month.
Industrial capital values increased by 0.3% in July as. Industrial in the South East saw capital values rise in line with the sector, while Rest of UK Industrial capital values increased by 0.2%. Industrial rental values grew by 0.5% over the month with Industrial in the Rest of UK rental values increased by slightly higher than Industrials in the South East. The Industrial sector posted a month-on-month total return of 0.7% across July.