OUTER LONDON OFFICES BUCK NEW YEAR TREND
Rental values in the Outer London/M25 office market increased by 0.7% in January 2016, shrugging off the normally quiet start to the year, according to the latest CBRE Monthly Index. Offices in this market recorded stronger growth than both Central London (0.4%) and offices elsewhere in the UK (0.3%).
In general, rental value growth across All UK Property made a typically tentative start to the year, slowing to 0.1% in January from the 0.4% seen for the last three months of 2015. This trend is in line with figures since the beginning of 2010, which show that January’s performances are always weaker than December’s. This trend also affects total returns across All UK property, which fell from 1.1% in December 2015 to 0.6% in January 2016.
Historically January is always a quieter time for the market, with everyone taking stock of what the year ahead could bring. Figures we’re seeing for the start of 2016 are no different. However, it’s encouraging to see the Outer London/M25 office market bucking the trend to deliver value for investors and developers alike.