UK commercial property values have suffered their largest monthly drop since beginning their downward trajectory in November last year.
According to the IPD’s latest UK Monthly Property Index, values slumped 0.5% in May in the seventh consecutive move downwards as confidence in the UK property sector fell due to concerns surrounding the Greek elections.
Total return slid to 0%, as income return, steady at 0.5%, could not offset the fall in values. Total return has not been flat since June 2009.
Separately, the IPD’s UK Annual Rural Property Index revealed a 14.2% jump in value in 2011 as investors piled into the sector on the back of rising commodity prices. This compares with a 1.9% rise in commercial property in the same period.
Rural property’s annual return was 15.9% – double that of commercial property.
