IPD, the world-leader in commercial real estate performance analysis services, has released the results for its UK Monthly Property Index for May 2008. The Index saw a total return of -0.7% m/m in May 2008, slightly lower than the -0.5% m/m return seen in April but still continuing the broadly upward trend since the -3.7% return seen in December 2007.
Capital growth fell marginally, from -1.0% in April to -1.2% in May, while income return remained unchanged at 0.5% m/m. On a 12 month basis, however, the all property total return hit a record low of -13% in May, down from -11.7% in April, as the relatively strong months of the first half of last year are successively dropped from the calculation.
Of the three sectors, Industrials took first place, with a m/m total return of -0.5%, followed closely by Retails, at -0.7%, with Offices suffering the sharpest fall in values and so dropping down to third place recording a return of -0.9%.
Malcolm Frodsham, Research Director at IPD, said: "After eleven months of falling capital values, May 2008 also registered a very small fall in rental values; the first month that both the yield and rent drivers of capital value growth have been pushing in the same downward direction."