The UK’s Fair Value Index fell from 72 in Q4 2014 to 58 in Q1 2015, according to DTZ’s latest report.
The new score indicates British commercial property is starting to lose some of its attraction as a result of significant yield compression.
The strong weight of capital targeting property means the market is now becoming more fully priced.
Regional industrial and retail markets are now the most attractive for prime commercial property investment, according to the index published today.
Cardiff industrial topped the list for prime investment potential.
Fergus Hicks, DTZ’s global head of forecasting, said: “We believe that the UK property’s attractiveness will continue to diminish throughout the rest of this year, so investors need to be much more selective about targeting better-value opportunities.”
