'February sees property returns improve'

Despite reports of instability following the credit crunch, returns on property investments improved in February, it has been claimed.

According to figures from commercial property advisor CB Richard Ellis (CBRE), monthly returns in February were -0.9 per cent - the strongest since the credit crunch began to affect commercial property returns in August.

Total returns of -2.5 per cent in the first two months of the year were a "substantial improvement" from the -7.6 per cent recorded for the previous two months, the organisation said.

UK all-property capital values were recorded by CBRE to have fallen by 1.3 per cent in February - compared to an average of -3.2 per cent over the previous four months.

Office values were found to be more resilient than those in the retail and industrial sectors.

Although the UK economy is "by no means immune", CBRE said it "continues to demonstrate greater defensiveness to current financial and credit market conditions that the US and Eurozone".