Commercial Finance Specialists

Real estate agent CB Richard Ellis believes that investor caution and falling growth indicate that the property investment market is slowing down.

Growth in the UK commercial property investment sector is "clearly slowing" according to a leading real estate agency.

The latest research from CB Richard Ellis finds that while the year-to-date increase in the value of commercial development assets now stands at 6.8 per cent, the month of June saw growth of just 0.6 per cent.

This in turn meant that the All Property total return for June slowed from 1.2 per cent to 1.1 per cent.

CB Richard Ellis' economics and investment senior analyst Nick Parker said that with investors becoming more cautious and yields flattening, the market is clearly slowing down.

"With the summer months now upon us, a further slowdown in investor activity could have an impact on competition for property and trends in yields," he explained.

Kelvin Davidson, property economist at Capital Economics, said last week that such a slowdown in the market is to be expected, as people begin to question whether they can afford to pay ever-higher prices.

Posted by Tess Nelson.