UK commercial property improved slightly in June, according to CBRE, with values falling by 0.5 per cent from May compared to the previous month's decline of 0.6 per cent.
This in turn helped to keep total returns steady across the month following a decline of 0.1 per cent in May. As a result, commercial property values have fallen by an average of 2.3 per cent so far this year with a total return of 0.6 per cent.
Central London saw its first month where values were unaltered after a predominantly positive three years for office property in the capital. So far they have recovered 46.4% in value, and now sit only 21% below the peak of 2007.
Nick Parker, Senior Analyst of Economics & Forecasting at CBRE, said: "The rate of decline for UK property hasn't worsened, as many would have expected this month. This perhaps signals an inflection point in the market, as investors sit on their hands and wait for some green shoots.
"Foreign investment remains crucial at this juncture, with Central London remaining the focal point for both the UK and Europe, with 75% of all transactions in the capital attributable to foreign purchasers in Q2.
"There is definitely scope for some entrepreneurial investors to make a mark in the UK property market in coming years, with yields on secondary property still extremely high amid occupier uncertainty, and theoretical borrowing rates at extreme lows."
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