Capital value falls 'ease'

New research has revealed that commercial property capital values fell by 3.01 per cent during January.

The latest Investment Property Databank (IPD) Monthly Index revealed that the drop was less than that recorded in December, which suggests that such falls in the sector are beginning to ease.

It also found that total returns for January reached the best monthly level since September last year, while commercial property also outperformed equities and bonds across the month.

The co-founding director at IPD, Ian Cullen, outlined several of the possible reasons for the market conditions.

He explained: "The two-wave pattern to the cycle shifted noticeably in January, with the pressure on yields starting to relax whilst that upon rents spreading clearly into many parts of the retail and office sectors."

CB Richard Ellis's latest research suggested that rental falls in the commercial property market increased slightly during January.