Capital values tumbled 4.1% in November according figures released today.

The CB Richard Ellis UK Monthly Index showed values to have dropped 8.6% since July.


This index is widely seen to foreshadow the Investment Property Databank Monthly Index, released tomorrow, because CBRE values a significant proportion of the property monitored by IPD.

The drop is a sign that Benchmark indices are becoming more aligned with sentiment surrounding UK property. The £3.6bn Norwich Property Trust, the UK’s largest private investor property fund, reduced its values by 7% at the end of November, and on Monday New Star said that it had written down the value of its UK assets by 18% since July.

Total returns

CBRE’s figures showed all-property total returns were -3.7% in November, which pushed returns into negative territory for the year, -1.3%, compared to 16.8% in the same period last year.

London offices were the worst performing sector in November, with capital values falling 6.4% over the month. However, the same sector also saw the strongest rental growth in November, posting 0.9%.