UK commercial real estate capital values rose by 0.2% in June, according to CBRE’s UK Monthly Index.
Rental values rose 0.1% over the month and total returns increased by 0.6%. In H1 2025, capital and rental values increased by 1.4% and 1.6% respectively, while total returns stood at 4.2%.
The retail sector recorded the highest total returns for June (0.8%) driven by income return, but capital values still rose by 0.2% month-on-month. Standard shops and shopping centre capital values increased by 0.3% in June and retail warehouse capital values rose by 0.2%.
Office total returns were 0.6% in June, with Central London capital values increasing by 0.9%. Outer London/M25 Office values increased by 0.1%, but rest of UK office values fell by 0.5%.
Industrial sector total returns were 0.6% for June and industrial capital values rose by 0.2% across both the South East and rest of UK segments.
Steven Devaney, senior director in the CBRE UK research team, said: “The half year results indicate a gradual, but resilient recovery in UK commercial real estate. All sectors are now seeing increases in capital and rental values, while yields have remained stable in H1. This should provide more confidence for investors seeking to deploy capital through the remainder of the year.
“Lenders are also looking to deploy further funds in real estate, as shown by our recent lender intentions survey. More than three quarters of European lenders expect to increase origination activity in 2025, which will support further activity and market recovery as 2025 progresses.”
