In the first edition of the new Cluttons IM Commercial Property Examiner, we explore the latest underlying economic and financial market drivers that help shape our real estate portfolio strategies.
In the medium to long-term, we continue to expect the UK’s exit from the EU to entrench the current slow down in economic growth that will restrain rental growth and cause yields to soften.
As a result, we are anticipating a gradual weakening in property values over the next three years with an average annualised total return of 4%. However, these returns should still compare favourably to both UK equities and gilts on a relative basis.
