M&G Real Estate’s in-house research team produces regular updates on our key markets, alongside more in-depth pieces on major trends affecting global property today.
Latest real estate market outlooks
Asia Pacific is on track to deliver some of the highest total returns globally in 2016 – averaging nearly 10% across the region. Following the UK’s vote to leave the European Union, and the expected period of market volatility in that region as a result, appetite for Asia may pick up even further thanks to its relatively more attractive GDP growth and prospective returns.
Europe is enjoying sound and improving fundamentals, which in turn are starting to translate into rental growth. This – coupled with scope for more yield compression in some markets – should help generate total returns of circa 6.5% pa over the next three years.
After three years of exuberant, double-digit returns in the UK property market, we expect overall performance to revert towards the long-run sustainable levels, supported by still healthy investor demand. Encouragingly, rents continue to rise at above-average rates, led by regional offices.
Read our analysis of which segments of the UK real estate market may face the greatest short-term challenges, and of the long-term investment opportunities which may arise from any volatility.
Investors and occupiers are increasingly looking beyond London for, respectively, higher returns and lower rents. The big question is whether the regional cities have sufficiently large and diverse economies to present an attractive long-term investment proposition. We have developed a proprietary index of vital signs to measure the heartbeat of 13 of the UK’s biggest cities and assess the strength of the opportunities on offer.
The UK leisure sector presents an attractive real estate investment opportunity thanks to strong economic prospects, the potential for rental growth and diversification benefits. The latest Magnify paper from M&G Real Estate’s research team assesses the opportunities in detail.
Investors are increasingly looking for new ways to find opportunities away from the relatively crowded prime markets in Europe’s top cities. Our research shows that one way to forecast future growth spots is to measure innovation. Read the latest Magnify from M&G Real Estate to find out which of Europe’s cities offer high levels of innovation alongside attractive real estate pricing.
Significant advances in technology and the rise of the middle class in many countries are leading to major changes in shopping and lifestyle behaviours. In their latest in-depth ‘Magnify’ publication, the M&G Real Estate’s research team looks at the challenges and opportunities that these broad structural changes present for the real estate market.
The European Central Bank's €1.1 trillion quantitative easing (QE) programme should support European real estate prices, mirroring the experiences of the US, the UK and Japan. The latest ‘Perspectives’ from M&G Real Estate’s research team reviews the likely impact on investment flows, property yields and rents.
In their latest ‘Magnify’ paper, the M&G Real Estate research team analyse the opportunities in the European logistics sector. They expect rental growth to resume over the next 12-18 months after five years of declines, and see attractive investment opportunities in specialised logistics products on the outskirts of metropolitan European cities (such as parcel delivery centres and sortation hubs).
UK interest rates are expected to rise gradually over the next three years, in tandem with the economic recovery. What does this mean for commercial real estate?
Prime office yields in the centre of London’s City Inner Core have slumped to six year lows, diverting investor attention away from the coveted Square Mile and into the regions. Guy Sheppard from M&G Real Estate’s research team discusses how the ‘Big Six’ office markets are faring relative to London.
The M&G Real Estate Research team discuss the opportunities in UK industrial as a result of burgeoning e-commerce.
The UK economic recovery is starting to spread beyond London, opening up potential investment opportunities in office space in other major cities. In this edition of Magnify, the M&G Real Estate research team looks at the drivers of demand, rental prospects and current pricing in order to provide a view on which of the Big Six office markets (Bristol, Birmingham, Manchester, Leeds, Glasgow and Edinburgh) offer the best prospective returns.