The UK commercial property market saw a minor improvement last
month with values falling by 0.5% as opposed to falling by 0.6% in
May, according to CBRE's latest monthly index.

The small improvement has helped to flatten the overall total
return figure in June, following a small decline of -0.1% in May.
Throughout 2012 commercial property values have declined by 2.3%,
with total returns totalling 0.6%.

Property values in Central London remained entirely still
following a predominantly positive three years for office space
within London in general. These premises have recovered by as much
as 46.4% in value and are now just 21% below the peak pre-recession
values of 2007.

Nick Parker, senior analyst of economics and forecasting at
CBRE, said: "The rate of decline for UK property hasn't worsened,
as many would have expected this month. This perhaps signals an
inflection point in the market, as investors sit on their hands and
wait for some green shoots.

"Foreign investment remains crucial at this juncture, with
Central London remaining the focal point for both the UK and
Europe, with 75% of all transactions in the capital attributable to
foreign purchasers in Q2.

"There is definitely scope for some entrepreneurial investors to
make a mark in the UK property market in coming years, with yields
on secondary property still extremely high amid occupier
uncertainty, and theoretical borrowing rates at extreme lows."

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