In our Real Estate Investment Forecasts for Q2, we predict sustained double-digit total returns growth in 2022, as yields are still compressing and rental growth is sustained across most market segments.
Despite gilt rates rising, we believe that the property yield to gilt spread will settle at around 270bps, although there are large differences by sector. Economic growth is slowing, but so far, the risk of a recession is slim.
Highlights in our Q2 report include:
- Colliers predicts total returns growth of 12% in 2022
- Retail warehouses will be the best performing asset class over the next five years
- Solid rental growth sustained in the industrial sector