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Commercial Property Values Increase for First Time Since Brexit

The UK’s commercial property sector saw slight growth in capital values in October, according to a new property index.

CBRE: Commercial Property Values Rise for First Time Post-Brexit

The UK’s commercial property sector saw slight growth in capital values in October, according to a new property index.

The monthly UK commercial property index, published by CBRE, demonstrated that the capital values for the commercial real estate sector rose by 0.1% last month – the first monthly growth since the UK’s decision to leave the European Union in June.


Industrial property led the increase, rising 0.2% over the past month, with the retail and office sectors remaining flat at 0% growth in October.


The index utilises capital value metrics which assess the market based on the price that a property would likely have achieved on the date of the valuation.


Commenting on the results, Miles Gibson, head of research at CBRE, said: ‘This month’s results suggest continuing stability within the market in October. Occupiers and investors continue to take stock of the current conditions but many sectors remain resilient to Brexit-related uncertainty for now.’


The report also highlighted the stability of rental value in the commercial sector, with the overall market remaining stable as rises in retail and industrial properties were balanced by the decrease in office rents.


In the wake of Brexit, the commercial property sector was one of the most impacted with a number of commercial property funds closing to avoid volatility in the face of market uncertainty. Since then, several of the largest asset managers have re-opened the funds, as the market has achieved greater stability.


The rise in commercial property values mirrors the growth seen in the residential market as confidence returns to the property market following the initial hesitance seen post-Brexit.


Earlier this week, Halifax revealed that house prices had also risen in October, with an increase of 1.4%.

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