Capital values fall after more than a year of sustained growth

Capital values fell by 0.5% in July, according to the latest CBRE Monthly Index – the first decline in some 16 months. The decline in capital values across all property was led by the industrial sector, which recorded a fall of 1.4% in July. It is the first decline in capital values since June 2020. Retail was flat, with offices and central London offices both down by 0.1%. The industrial sector still recorded some rental value growth, up by 0.7%, as did offices, up by 0.1%, with all other sectors flat. Jennet Siebrits, UK head of research at CBRE, said: “After sixteen months of consecutive all-property capital value growth, the results of CBRE’s July Monthly Index shows that outward yield movement has put pressure on capital value growth. While industrial has shown the greatest fall in capital values, the sector continues to drive rental growth at the all-property level.” Retail warehousing was the only subsector with the retail market that reported any capital growth, up by 0.1%, while shopping centres – which had been recording steady growth for the past four months – saw values fall by 0.2%. To send feedback, e-mail samantha.mcclary@eg.co.uk or tweet @samanthamcclary or @EGPropertyNews