IPD said that its UK Monthly Index showed a total return of -0.8% month-on-month in March 2008, a very slight improvement on the -1.0% month-on-month return seen in February and continuing the upward trend since the -3.7% return seen in December. Capital values fell by 1.3% in March after a 1.5% fall in February and a 2.0% fall in January. Despite the easing in the monthly numbers, on an annual basis, All property total returns hit a record low of -10.7% year-on-year in March, down from -9.2% in February.
IPD said that its UK Monthly Index showed a total return of -0.8% month-on-month in March 2008, a very slight improvement on the -1.0% month-on-month return seen in February and continuing the upward trend since the -3.7% return seen in December. Capital values fell by 1.3% in March after a 1.5% fall in February and a 2.0% fall in January. Despite the easing in the monthly numbers, on an annual basis, All property total returns hit a record low of -10.7% year-on-year in March, down from -9.2% in February.
'The first quarter of 2008 has not proved to be a re-run of the sharp pricing correction on commercial property witnessed in the final quarter of 2007. Capital values are still falling, but the rate has moderated month-on-month this year and rents continue to grow in all of the three main sectors. The results may not signal the bottom of the market just yet but at least investors have a better idea of where the floor is likely to be', said Malcolm Frodsham, IPD's research director.
