The investment performance of London's office and retail sectors is surpassing other markets in the UK, it has been suggested. This is one of the findings of the CB Richard Ellis (CBRE) monthly index for the country, with the commercial sector continuing to show resilience during September.
According to the real estate consultancy’s index, the commercial property market enjoyed capital growth of 0.3 per cent, led by the London offices. In addition to this, CBRE said that London has been the most popular city for cross-regional investment over the past 18 months, suggesting that an increasing number of investors are confident about the market’s prospects.
Nick Parker, senior analyst with CBRE, said: "UK office markets are being driven by the outperformance in central London. This is where investor interest is most focused, and where there are still signs of downward yield pressure. There is very little evidence that markets outside of London are likely to see any more significant upside in pricing for the time being."