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The UK Real Estate Digest: a complex landscape with pockets of opportunity

What is the current state of the UK commercial real estate investment market? Tom Sharman, our Head of Research & Strategy, shares his view.

Investors appear to be waiting for clearer signals on interest rate cuts, economic growth, and political stability.

The UK Real Estate Digest

Download Issue 113 of UK Real Estate Digest 2024

What to expect in this edition of the UK Real Estate Digest

  • Investment activity so far in 2024 has been lacklustre, with barely half the volume recorded in 2022.
  • Major private equity players have broken the deadlock though, signalling a belief that cyclical risks have receded and attractive entry points exist.
  • Data from MSCI suggests industrial and retail parks values are now firming up.
  • In contrast, office values are continuing to drift downwards despite relatively positive rental conditions.
  • Independent forecaster PMA predicts a slow but steady recovery for most sectors from 2025.

 

Independent forecasters are predicting a gradual recovery in the UK commercial property market. Look out for our Autumn Budget commentary for more insight and outlook.

This material is published by NatWest Group plc (“NatWest Group”), for information purposes only and should not be regarded as providing any specific advice. Recipients should make their own independent evaluation of this information and no action should be taken, solely relying on it. This material should not be reproduced or disclosed without our consent. It is not intended for distribution in any jurisdiction in which this would be prohibited. Whilst this information is believed to be reliable, it has not been independently verified by NatWest Group and NatWest Group makes no representation or warranty (express or implied) of any kind, as regards the accuracy or completeness of this information, nor does it accept any responsibility or liability for any loss or damage arising in any way from any use made of or reliance placed on, this information. Unless otherwise stated, any views, forecasts, or estimates are solely those of NatWest Group, as of this date and are subject to change without notice. Copyright © NatWest Group. All rights reserved.

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