UK commercial real estate capital values and returns dropped during 2020 as the Covid-19 pandemic battered business, although there were signs of an upturn at the tail end of the year.
Across all types of property, capital values nudged up by 0.3% during December, according to CBRE, the first such rise since October 2018. Industrial values grew by 2.7%, a record monthly increase, while a rise in central London lifted office values by 0.1%. Retail dropped by 1%. Total returns for the month across all properties, with rental growth flat, were 0.8%.
For the year, capital values dropped by 7.6% and rental values by 2.5%, leaving total returns at -2.2%. Across the year, industrial was the only sector to post a rise in either capital values or rental values, at 4.8% and 2.8% respectively.
