UK commercial property values drop in 2022, wiping out 2021 gains: data
UK commercial property capital values decreased by 13.3 per cent as a whole in 2022, and annual total returns were down 9.1 per cent, according to the CBRE Monthly Index published on Monday (Jan 9).
CBRE’s index shows a sharp turnaround from 2021 when commercial property values rose 13.8 per cent and returns rose 19.9 per cent.
Property valuations in Britain’s US$1.6 trillion commercial real estate sector have come under pressure in recent months from rising interest rates and economic uncertainty.
The industrial sector was particularly hard-hit, with capital values down 21 per cent in 2022 and annual total returns of -18.1 per cent, CBRE’s data showed.
Retail property capital values fell by 8.1 per cent in 2022, while the office sector was down by 12.1 per cent. Both also saw negative returns, of -2.1 per cent and -8.3 per cent respectively, CBRE said.
Following a surge in demand for redemptions, UK property funds managing around US$18 billion worth of assets have introduced limits on investor withdrawals. REUTERS
A NEWSLETTER FOR YOU
Property Insights
Get an exclusive analysis of real estate and property news in Singapore and beyond.
KEYWORDS IN THIS ARTICLE
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Property
Sellers can list their flats on HDB Flat Portal from May 13
Indian luxury homes claim larger share of sales: report
Half of German housing construction firms short on orders
China’s housing mess finally hits Xi’s interest
A way to beat high mortgage rates is to take over someone else’s loan
With China’s property market struggling, India, South Korea and Vietnam are hot