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UK Real Estate Investment Forecasts Q1 2022

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Despite the expected increases in interest rates and gilts this year, we expect further mild yield compression driven by the global weight of capital.


Consequently, all-property returns will remain healthy despite slowing from 2021’s six-year high of 16.5%.

Highlights include: 

  • Expected total returns growth of 9.6% in 2022 and 6.4% in 2023

  • Yields will continue to compress this year, especially for retail warehouses

  • Despite narrowing, the all-property yield/ gilt spread will settle at around 275bps

  • High street shops and shopping centres will see further rental declines over the next two year

  • Life sciences and pharmaceutical sectors continue to drive office demand in the ‘Golden Triangle’

  • Industrial (+13.2%) and retail warehouses (+12.8%) will record the highest total returns growth in 2022

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UK Real Estate Investment Forecasts Q1 2022

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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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