UK commercial property returns fell to 2.3 per cent in the first quarter of 2011, according to the IPD UK Quarterly Property Index, as the re-pricing from the downturn appears to be running its course.

The rate of capital growth fell by 50 basis points to 0.8 per cent. The results show that values have now improved over the last seven quarters. Values fell by 42.2 per cent between June 2007 and June 2009, and have since recovered by 19.9 per cent.