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.
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.
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%.