Capital growth rates picked up again in December across all property types, according to the latest IPD UK Monthly Property Index from MSCI.
Offices once again led the way in growth but retail took over from industrial as the next-best improving market sector.
Overall, capital grew 0.7% in December up from 0.5% in November. The pick-up was once again led by the office sector which improved by 30bps to 1% in December, followed by retail which grew by 20bps month-on-month to 0.4%. Industrial capital growth however remained relatively static at 0.8%.
Income growth remained static across all property at 0.4% month-on-month, as did the sub sectors of retail, office and industrial at 0.5%, 0.4% and 0.5% respectively.
Total returns were up 1.1% in December compared to 0.9% in November, with offices showing strong improvement, up from 1% in November to 1.3% growth in December. Retail showed more signs of improving than industrial, helped by its improved capital returns.
However incremental increases in both income and capital helped push total returns for industrial assets to rise by 10bps to 1.3%.
To send feedback, email mike.cobb@estatesgazette.com or tweet @MikeCobbEG or @estatesgazette
