UK commercial property update and outlook
Valuations based equivalent yields across all property segments continued to rise in January but at a significantly more moderate rate than during the record breaking Q4 2022. This reflects increased investor activity and sentiment in the direct market, where yields have hardened again for some assets. Some of the worst interest rate fears from last September have not been realised, meaning some of the lowest yielding property assets may have overcorrected while the more thinly traded higher-yielding segments may require further softening to re establish appropriate relativities.
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