UK commercial real estate values continued their slow recovery in April 2025, with capital values rising by 0.2%, according to the latest CBRE UK monthly index.
The index found total returns for the month were at 0.7%.
The data showed the retail sector had the highest total return for the fourth month in a row at 0.8%.
This included an income return of 0.6% and a 0.2% rise in capital values.
All retail segments saw gains, with retail warehouses posting the highest increase at 0.3%.
Standard shops and shopping centres both went up by 0.2%, while retail rental values increased by 0.3% in April.
Additionally, the index found offices saw total returns of 0.6%, while office capital values grew by 0.2% overall, with central London up by 0.7%.
The rest of UK office capital values rose by 0.1%, but outer London/M25 office capital values fell by 0.2%.
All office segments saw rental values go up, with the sector as a whole recording 0.2% rental growth.
The industrial sector saw total returns of 0.6% in April, with the data showing industrial capital values and rental values both increased by 0.2%.
There was little difference in growth between South East industrials and the rest of the UK.
Rental growth helped drive the recovery in capital values, according to the index.
Yields stayed mostly the same in April, and CBRE said the gap between buyers and sellers has narrowed.
Steven Devaney, senior director at UK research, said: “The cut to the UK Bank Rate last week, together with expectations of future cuts, should feed through into borrowing costs and bond yields moving forward.
“If this happens, then we see the market being well positioned for an uptick in activity through the remainder of the year.”
