UK commercial property update and outlook
December 2023
All Property annual total return jumped again as expected from -7.9% in October to -3.0% in November and could even finish the year back in positive territory. Industrial is once again the outperforming sector as the effects of the late 2022 outward yield shift fall out of the figures. Encouraging December inflation data underlines our position that Q4 2023 will have been the bottom of the investment market and there will be scope for some substantive interest rate cuts from mid-2024. Despite weakness in the real economy, investor confidence is set to pick up next year, with greater depth and competition to the buyer pool.
