InvBrief – Spring 2017

Property investment market – Spring 2017

Economic Overview

• Inflation reaches 1.8% in January 2017
• Sterling destabilisation may fuel further inflation over 2%
• MPC maintains interest rate at 0.25% for now
• GDP forecasts projection at 2% for 2017.

Property Overview

• All Property total returns for 2016 were 3.5%
• Industrial property was the best performing sector in 2016
• Rental growth remains positive albeit slowing
• Q4 2016 saw yield compression following increases in Q3 post the referendum
• Gerald Eve forecast 1.7% total returns for 2017
• Distribution warehouses are forecast to deliver the highest total return in 2017 at 4.8%
• Central London values continue to be underpinned by significant investor demand.

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