Total returns on UK property were slightly lower in November, according to MSCI’s IPD UK Monthly Property Index.
At 0.9% across all property types, the figure was down from 1% for October as the office sector showed signs of a slowdown in capital growth.
Office capital growth rates fell by 20bps from 0.9% to 0.7% compared with the month before, while retail and industrial growth rates remained firm at 0.2% and 0.8% respectively.
With office income returns holding at 0.4%, the total return for offices in November was down to 1%, compared with 1.2% for industrial assets and 0.7% for retail, both matching the previous month’s figures.
Retail rents continued to perform well in November, rising by 0.5% – a figure matched by the industrial sector.
Over the 12 months to the end of November, offices remained the highest returning sector. At a 19.1% total return, they were a percentage point above industrial and 10.1 percentage points above retail performance.
