Rental values also increased by 0.1% across all UK property in July 2017.
The growth in capital value in the retail sector was 0.2% in July, boosted by steady performances from high street shops (0.4%) and shopping centres (0.3%) in the South East.
Shopping centres recorded their highest recorded capital value growth of 2017.
Capital values in the office sector grew by 0.3% on average in July, slightly down from the 0.4% recorded in June and boosted by offices in the City of London and the rest of the UK recording 0.4% and 0.3% respectively.
- London development land transactions hit £722m in Q2
- Demand for new-build office space in Leeds surges
- Brexit delays ease average construction workload
Central London office rental values saw a slight decrease of -0.1%, a marginal improvement compared with June’s -0.3%, but central London offices have now failed to record rising rental values since March 2017.
Industrial capital value growth again outperformed the other main real estate sectors with an increase of 0.8% in July, following on from the 1.5% increase in June.
“The slowing performance reported in July is not unusual for the first month of a quarter, especially following the strong performance of H1 2017,” said Miles Gibson, head of UK research at CBRE (pictured above).
“Continuing the 2017 trend so far, national averages were boosted by industrial property.”