UK property investment returns fall 10.4% in 2022 - MSCI

By Elizabeth Howcroft and Carolyn Cohn

LONDON – UK property funding returns fell 10.4% in 2022, in a pointy turnaround from positive factors of 20% in 2021, MSCI‘s month-to-month UK property index confirmed on Tuesday.

A lot of the losses got here within the second half of the yr, which noticed returns of -18%, the index confirmed. Industrial properties make up 41.1% of the index, with workplace (26.3%) and retail (21.5%) the subsequent greatest teams.

Britain’s business actual property market has come beneath stress from excessive inflation and financial uncertainty.

A number of open-ended property funds have put restrictions on withdrawals to forestall a stampede for the exits.

Federated Hermes has deferred redemptions since August on the FH Property Unit Belief “to permit orderly asset gross sales”, a spokesperson for the asset supervisor informed Reuters, bringing property fund property dealing with curbs to greater than 16 billion kilos ($19.65 billion).

Earlier in January, an index printed by CBRE confirmed UK business property values decreased by 13.3% as an entire in 2022, and annual whole returns have been down 9.1%.

Post a Comment

Previous Post Next Post