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UK commercial property had a rough month in November, CB Richard Ellis (CBRE) has reported.
Capital values fell by 4.1 per cent, which could be the most rapid correction ever. City Offices struggled despite most of the remaining strength coming from central London, where rents grew by just less than one percent in the month.
Over the year, the All Office return was marginally positive because of a 3.6 per cent growth so far, however, there were big adjustments.
"Offices in London, which had previously held up better than most segments, saw capital values fall by 6.4 per cent in November," CBRE reported. It also noted: "Year-on-year, property was outperformed by both gilts and equities in November."
Reports from the private market are also negative a study by the Royal Institute of Chartered Surveyors (RICS) revealed that 40.6 per cent more surveyors reported a fall than a rise in November – the previous month it was only 23 per cent.
Jeremy Leaf, a spokesperson for the RICS, said: "It is clear that the housing market continues to feel the strain of depressed market conditions."