Property returns are slowly improving.
According to Investment Property Databank, returns in August were -1.1% compared with -1.3% in July.
The latest UK Monthly Property Index showed declines in capital growth slowed to -1.6% from -1.8% in July whilst income returns remained static at 0.5% on a comparable basis.
On a 12-month basis the total return for the 12 months to August was -17.1% compared to –16.1% for July.
All sectors continued to edge lower in August with offices sliding to -1.3%, while retail and industrial property worsened to -0.9% and -1.3% respectively.
Malcolm Frodsham, director at IPD, said: ‘This remarkable cycle has been faster and more synchronized than that of the early 1990s. However, the underlying feature of previous cycles is beginning to assert: that of the underperformance of offices in a downswing.’
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