CB Richard Ellis Monthly Index
London – 7th December 2009 – November’s 3.4% total return marked the strongest month yet seen in the history of the CB Richard Ellis (CBRE) Monthly Index. The November return surpassed last month’s 2.7%, previously the strongest monthly total return. All Property capital values rose by 2.7% over the month, with Retail Warehouses and Shopping Centres leading the way with increases of 4.0% and 3.9% respectively. Central London offices also saw further strong performance, with capital values up 2.7%. All property rental values continue to correct, albeit at a slower rate than last month, falling 0.3% in November, and are down 9.3% annually.
David Wylie, Head of Economics & Forecasting at CBRE, commented: “The turnaround in investor demand since the mid year has seen a surge in the performance of commercial property, with year to date total returns now positive at 0.1%. The strength and depth of current investor demand seems destined to lead to a continuation of the very strong returns seen in recent months into next year. However, the prospect of more significant increases in supply coming through, and the generally weak rental growth outlook, may act as a brake on the strength of the recent recovery.”
The CB Richard Ellis Monthly Index showed:
• Total returns for All UK Property were 3.4% in November, and 0.1% in the year to date.
• All Property Capital values rose by 2.7% in November, surpassing October as the strongest month in the history of the index.
• All Property rental values declined by -0.3% in November, a marginally lower rate of decline than seen in September.
• Rental growth declined by -8.5% in the year to date and -9.3% annually.
• All Property equivalent yield fell 21bp, ending the month at 7.6%.