The data, which originates from the IPD UK Monthly Property
Index, showed that values in the market had risen by 6.8% during
the last 10 months in a period of consecutive growth (though they
remain below their 2007 peak levels).

Real estate total returns for March were 1.6 per cent, boosted
by an income return of 0.5 per cent.

There were particularly strong returns for both the industrial
and office sectors, measured at 2.2 per cent and 1.9 per cent
respectively and driven by further capital value growth of 1.6 per
cent and 1.5 per cent.

The retail sector was slower to improve (as it has been for a
reasonable time now), but still presented a return of 1.1 per cent,
which was the strongest performance since December, in turn aided
by a capital growth of 0.6 per cent.

Rental performance in the sector remained positive, even without
reaching the high point of commercial purchase.  There has
been a modest 1.2 per cent increase over the course of the last
twelve months.

Within the retail sector, there have been some struggles in
rented property, with lacklustre demand and muted consumer
confidence meaning that rents stayed relatively flat during the
last quarter.

Total returns for standard shops outside of the South East
totalled 1.0 per cent in March, with values growing by 0.4 per
cent.  In the South East, returns were 1.2 per cent, driven by
a capital growth of 0.5 per cent.

Retail warehouses and shopping centres also saw an upswing
during March, with retail parks across the UK returning 1.2 per
cent and shopping centres 0.9 per cent, with improved value growth
of 0.3 per cent.

Phil Tily, the executive director and head of UK and Ireland for
the IPD, said:

"The broader UK commercial real estate market continues to show
signs of recovery and growth, with March proving to be the
strongest month of 2014 so far. While rental values remain weak for
the beleaguered retail sector nationally, improving investor
sentiment, added 0.6% to capital values in March alone. Notably,
the rate of capital growth for retail parks, distribution
warehousing and department stores more than doubled
month-on-month."

—