UK Commercial Property Market Weakens

The recovery of UK commercial property sector slowed in May, as reported by CB Richard Ellis (CBRE) - leading property advisor in Great Britain - on Friday, June 4th 2010. As investors have become more cautious, the level of agreed deals and the pace of price growth decreased.

The Monthly Index compiled by CBRE showed that capital growth on the UK commercial property sector fell by 0.7% in May, bringing the annual increase down to 6.2%.

Commenting on the figures, Mr. Parker - investment analyst at CBRE - said that investors have become less interested in British commercial property as they believe the market is fully priced.
At the same time, the rental sector of UK commercial property did not demonstrate any significant change last month with property rental values falling a mere 0.1%.

The market that performed best in both, sale and rental sectors, is Central London.  The total returns for the capital of Great Britain amounted to +1.8% and +0.2% for the sales and rental sectors accordingly.