UK commercial real estate capital values rose 0.2% in June, according to the latest CBRE UK Monthly Index, with rental values up 0.1% over the month and total returns standing at 0.6%.

The June results continue the steady 1.4% increase in capital values and 1.6% rise in rental values in H1 2025, CBRE said. Total returns came in at 4.2% in H1.

The retail sector recorded the highest total returns for June, at 0.8%, driven by income return, although capital values also rose, by 0.2% month on month.

Office capital values rose by 0.1% in June, with central London capital values increasing by 0.9%, while overall office total returns stood at 0.6%.

Industrial capital values rose 0.2% across both the South East and the rest of UK segments in June, with overall total returns of 0.6%.

Steven Devaney, senior director in CBRE’s UK research team, said the half-year results indicated a gradual but resilient recovery in UK commercial real estate, with capital and rental values increasing in all sectors, while yields remained stable in H1.

He added: “This should provide more confidence for investors seeking to deploy capital through the remainder of the year. Lenders are also looking to deploy further funds in real estate, as shown by our recent lender intentions survey.

“More than three quarters of European lenders expect to increase origination activity in 2025, which will support further activity and market recovery as 2025 progresses.”