UK property returns 0.6% in September as equities fall another 5.0%
By Bridging Loan Directory -
Commercial property delivered a total return of 1.9% for the three months to September, despite the wider market turmoil that has seen 13.5% wiped from the value of equities, according to the IPD UK Monthly Index and FTSE All Share Index.
Capital growth in September remained steady at 0.1%, buoyed by a strong performance in the Central London office and retail markets. Despite growing concerns over a pricing bubble in the Central London office market, growth continued in September at 0.6%.
However, there are indicators that despite the wider economic risk, investors are starting to look outside the centre to find more competitive assets. Offices in the Rest of London saw positive growth for the fifth consecutive month, of 0.5%.