Capital values and rental values of multifamily properties rise in the six months to March 2025

Capital values for multifamily schemes rose by 1% in the six months to March 2025, according to the results of the latest CBRE UK Multifamily Index. This increase was greater than that recorded for the previous six months, when capital values rose by 0.5%.

Rental values were the main driver for increases in capital values. The rental values of assets in the index rose by 1.5% in the six months to March 2025. Pricing remained stable, with capitalisation rates moving out by just 1 basis point over the same six-month period.

Gross income from multifamily assets increased by 0.9% in the period to March 2025. This was a smaller increase than in the previous six months when gross income rose by 4.1%. Income growth over the period to March was affected by a small fall in occupancy for schemes located in regional markets. Nonetheless, the average occupancy rate for schemes in the index remains high, at 95% in March 2025.

Schemes in London delivered similar capital value growth to schemes located in regional markets for the six months to March 2025. Capital values for London assets increased by 0.9% while rental values rose 1.4%. In comparison, schemes in the rest of the UK saw capital values increase by 1.1% and rental values rise 1.5% over the same period.