Overall, commercial property across the UK saw total returns of 0.2 per cent in August – mirroring July’s performance –, but central London pipped all other regions with a 0.5 per cent total return, according to CBRE’s latest monthly index.
Year-to-date, capital values overall are down 2.9 per cent as the market remains subdued.
CBRE said central London’s outperformance, was due to investors’ continued focus on prime assets.
The category dubbed ‘All Other’ property – which covers alternative assets which don’t fit into the traditional sectors such as car showrooms, gyms and cinemas – performed relatively well, with values down just 0.9 per cent year to date.
“Some of the assets that fit into ‘Other Property’ offer more annuity style secure income streams for investors, which is ultimately what investors have been targeting since capital values stuttered last year,” said Nick Parker, senior analyst of economics & forecasting at CBRE.