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.
UK real estate - opportunities in a Brexit world
One month after the referendum vote to leave the EU, the UK real estate market is adapting to the result. Read our analysis on which sectors may face the greatest short-term challenges, and which may present attractive long-term investment opportunities.
Latest real estate market outlooks
In the weeks following the UK referendum vote to leave the European Union, the initial impact of the result has been uncertainty, causing falls in confidence. A slowdown in economic growth is likely as businesses and consumers wait for clarity over what form the UK’s new relationship with Europe will take and also, more in the near term, over the domestic political environment.
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.
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.