Despite the positive, if not somewhat surprising economic results this week, CBRE's Monthly Index Result's Call on Wednesday provided yet more sobering news on the state of the UK property market.

The headline capital value loss figure for 2022 for All Property was -13.3%, with some sectors (and sub-sectors) faring far worse. Industrial capital value loss for 2022 was -21.0%, Offices recorded -12.1%, with Retail recording -8.1%, making it the best performing sector of the 'traditional three'.
The Index also shows a -14.6% capital value fall since the beginning of October, with -3.0% in December alone. However, there are some suggestions that property valuations will reach their lowest point in the first quarter of this year, before starting to rise again.
Transactional activity is, however, unlikely to improve meaningfully until the fall in values has run its course and vendors accept that purchasers will only be prepared to buy if the pricing reflects the new reality of higher interest rates.
If pricing settles and rental value growth continues, property total returns are expected to be higher this year than in 2022.
Enjoy your Sunday.