The United Kingdom experienced commercial real estate office price issues again in July, according to a report from IPD UK.
The city had office price gains totaling more than 36 percent in the past three years, but much of the improvement was previous to 2012. Through May, prices improved by less than 2 percent, but the figure declined by approximately 0.6 percent in the past two months, the UK Monthly Property Index from IPD explained.
"Falling values, though difficult for a market struggling with financing, do mean higher income yields, if investors are prudent in their asset selection," said Phil Tily, managing director for IPD UK and Ireland. "Initial yields are now around 6.3 percent across the UK, but they rise to over 7 percent for industrial assets, and over 8 per cent for some of the regional office markets."
When looking at the UK as a whole, the country experienced a 0.2 percent property price rise, the report added. The retail sector helped improve the situation, as it rose 0.6 percent during the month.