Shopping centres were a star performer during July, returning 3.5%, of which 2.9% was capital value growth, according to CBRE’s monthly property index.
This was more than double their 1.5% total return the previous month.
All-UK Property returned 1.7% in July, with industrials leading the way with a 2% total return. This is slightly down on June’s 2.1% figure, and takes total return for the year to date to 10.9%.
Offices and retail returned 1.7% respectively. Retail, which has typically lagged the other two sectors, saw its performance bolstered by strong capital values, which rose by 1.2% during the month. However, this was slightly below the 1.6% capital growth achieved by the sector in June.
Rental value growth for all-UK property remained unchanged from the previous two months at 0.2%, while capital values rose by 1.6%.
Yields continued to harden, at 5.5% for all UK property, compared with 5.6% in June and 5.7% in May.
sophia.furber@estatesgazette.com
