The easing of virus restrictions has brightened the economic outlook and prospects for occupier markets. And with rises in inflation expected to be temporary, we think monetary policy will remain highly accommodative over the next five years, keeping the environment supportive for property yields. However, the structural headwinds in the retail and office sectors mean that the rental growth prospects are poor outside of industrial. Further, despite looking undervalued, we think that retail yields need to rise further before assets look attractive. As such, we expect only a weak recovery in all-property values over 2021-2025. Within this, industrial will be the standout performer.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services