Over the past 18 months, commercial property capital values have declined sharply, leading to a second consecutive annual decline in total returns.
However, we anticipate a turning point for commercial property in 2024, with an expected improvement in investment activity due to interest rate cuts, lower inflation, and enhanced debt financing opportunities. Highlights in the Q1 REIF include:
- Capital values to rise across the board, with strongest capital growth expected across Central London high street shops and London industrial units
- Total returns expected to increase by 10.2% in 2024
- Rental growth will be sustained across all main sectors