The UK investment market has improved recently, with total returns in the region increasing by 0.2 per cent in July - the first positive return in over two years. However, in its latest Monthly Index, property consultancy firm CB Richard Ellis said this is mainly as a result of yields stabilising. The commercial property firm said there is “tangible evidence” of some buyers re-entering the market for prime assets in recent weeks and there has been a notable improvement in transaction volumes, “albeit from a relatively low base”. CBRE said it expects an upturn in investment activity in the UK in the third quarter of this year, but does not expect Irish investors to feature for some time yet. While there are signs of improvement starting to emerge in the investment sector in the UK, the index pointed out that conditions in the occupier markets, namely the office, retail, industrial sectors of the economy, continue to find conditions challenging, with significant pressure on rents and capital values. “While tenants are in a strong bargaining position in the current climate and are seeking out very competitive terms and conditions, it is important to point out that transactions continue to be negotiated,” CBRE said. - Read about the rest of CBRE’s July’s Monthly Index findings here >> |
