The average UK prime yield on commercial property stabilised in November for the first time in five months, staying at 5.63%, according to Savills.
The adviser put this down to a steadying political backdrop.
Savills says year-to-date commercial investment volumes have exceeded its expectations. They had reached just above the £50 billion mark by the end of November, just 7% below the annual total in 2019, and above its mid-year expectation that 2022 total volumes would be around the long-term average of approximately £46 billion.
It says that the alternative sector has made up 36% of year-to-date volumes, with offices following at 25%.
Savills says that the number of commercial sectors with yields moving outwards has halved since October, although some are still predicted to shift outwards. Food stores were notable in seeing their yields harden by 25 basis points in November.
West End offices have stayed at 3.75% while City offices are at stuck at 4.25% and shopping centres at 8%.
James Gulliford, joint head of UK investment at Savills, said in a statement: “H2 2022 saw an extremely rapid repricing of market yields in most sectors in response to external events, but November saw some stability emerge, putting many UK sectors in a good position for investor activity to return in the next few months.
"The fact that despite several months of uncertainty, year-to-date volumes are roughly in line with those in 2019, and above where we expected them to be when we reflected at the half year point, is cause for optimism.”