Shops and Retail Warehouses were the only other two major sub-sectors to avoid falls in values this month, with Shopping Centres, Industrials and offices outside the capital all seeing values slide in November.
Rental values held firm in November, as weakness in Shops, Shopping Centres and Regional Offices were offset by growth in the Central London Office and Retail Warehouse sectors. So far this year, rents remain flat on the CBRE Monthly Index.
Nick Parker, Senior Analyst of UK Economics & Forecasting at CBRE, said: "November was the first month this year where more widespread weakness started to creep into the UK property market performance with more real estate sub-sectors seeing capital value falls than gains.
"This comes as little surprise to most observers, with market momentum gradually fading over the past seven months. Given the wider economic uncertainty caused by weak fundamentals in the UK economy plus the growing threat posed by the euro zone, it now seems that investor appetite has once again become more narrowly focused on the super-prime end of the quality spectrum at the expense of assets further up the risk curve."
November UK Monthly Index snapshot:
* Overall capital values were flat this month, with total returns of 0.4%;
* Office returns weakened to 0.5% in November from 0.7% last month, with capital values flat over the month;
* Central London offices again saw the strongest sub-sector returns at 0.7%, with capital values up by 0.3%, and rental growth of 0.3%;
* The Outer London / M25 Office sector was the weakest property sub-sector this month, as values fell by 0.5%, delivering a marginally positive return of 0.1%;
* Rest of UK office total returns also weakened in November to 0.2%, on a par with the Shopping Centres;
* Retail warehouse and High Street shop capital values were unchanged this month, with both sector delivering total returns of 0.5%;
* Industrial property saw values fall by 0.1% again this month, with total returns of 0.4%, a marginal deterioration on the previous month;
* Overall rental values were flat over the month, with the year to date also seeing rental values unchanged;
* Equivalent yields were unchanged over the month, staying at 6.5%.
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