(Reporting by Elizabeth Howcroft, editing by Sinead Cruise and Ed Osmond)
LONDON, April 18 (Reuters) - UK commercial real estate
values rose by 0.6% in March, showing gains for the first time
since June 2022, according to the CBRE Monthly Index published
on Tuesday.
The pick-up in March was not enough to offset falls in
January and February, CBRE said, meaning that capital values
fell 0.3% overall in the first quarter of 2023.
"The March Monthly Index results showed a modest upturn,
positive signs against an eight-month backdrop of downward
movement in commercial real estate values," said Jennet
Siebrits, head of UK research at CBRE.
"It's too early to predict whether this is the start of a
recovery."
Retail capital values increased 1.1% in March, mostly driven
by retail warehouses rising 1.8%, CBRE said. Values in the
office sector fell 0.3% in March and lost 1.5% in the quarter
overall, while the industrial sector saw capital values rise
1.3% in March and end the quarter little changed, CBRE said.
Last month's global banking turmoil has exacerbated concerns
about the commercial property sector, although JPMorgan analysts
said in March that Europe's bank are less at risk from the
problems in commercial real estate markets than their U.S.
counterparts.
Property in the UK was already under pressure from rising
interest rates, lower demand for office space and recession
fears.
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