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Real Estate Investment Forecasts Q2 2021

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Given the better than expected resilience of the economy in Q1, along with that of the commercial property sector, we have revised our 2021 total returns forecasts from 3.8% in February to now, 6.4%.


Investor demand for supermarkets and industrial assets is driving further downward shifts in yields in those sectors. Although rents across the office segment will decline this year, we anticipate that following the UK’s vaccination roll-out and a phased return to ‘normal’ working practices, employees will start returning to the office which will further boost investor confidence.

We note the key takeaways in this quarter’s Real Estate Investment Forecasts Report below:

  • We expect total returns growth of 6.3% in 2021, up from the 2.3% decline recorded in 2020

  • Retail rents (with the exception of supermarkets) continue to fall sharply

  • Further yield compression in the industrial sector this year

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Real Estate Investment Forecasts Q2 2021

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Related Experts

Oliver Kolodseike

Director of Economics and Research

Research and Forecasting

London - West End

Oliver is Head of Economic Research and leads the quarterly UK forecasting process including the publication of Colliers' Real Estate Investment Forecasts (REIF) report. He also  authors the monthly Property Snapshot and, quarterly Scotland Snapshot. Prior to joining Colliers, he worked for the Centre for Economics and Business Research and IHS Markit. Oliver holds a BA in Economics from  Georg-August University Göttingen (Germany) and an MSc in Economics from Exeter University.

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John Knowles

Head of National Capital Markets

National Capital Markets

London - West End

A highly qualified real estate professional, John has extensive knowledge of direct and indirect real estate and finance projects in Europe and Asia.

Prior to joining Colliers, John was MD Corporate Finance at DTZ and Head of Capital Markets at LSH. He has worked extensively in distressed debt and NPL situations and has concluded transactions in the last 12 months for Cerberus, Starwood and LBG.

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