UK economic property and market review [electronic resource] third quarter 2007
UK economic property and market review third quarter 2007 [electronic resource]
- London GVA Grimley 2007
- GVA Grimley Economic and Property Market Review UK Third Quarter 2007 .
Reports that strong economic growth has occurred, but that inflation remains a concern. Employment growth is healthy. Considers all property rental growth to be at the peak of its cycle. Expects the rate of office rental growth to should slow over the next four years, but for retail property, expects 2007/08 to be the bottom of the cycle. Considers the sharp downward movement of commercial property yields seen over the last five years appears finally to have come to a halt. The UK commercial property sector has lost its risk premium over gilts and borrowing costs are now higher than property yields. Concerns about debt and borrowing and stock market volatility have caused a general re-rating of risk and higher investment risk premiums. Together with higher interest rates, expects this to put pressure on property investment yields. Forecasts total returns this year from direct property investment of 7.3%, and 4% in 2008.
GVA GRIMLEY ECONOMIC AND PROPERTY MARKET REVIEW UK
United Kingdom--
332.6324 $2 18
Reports that strong economic growth has occurred, but that inflation remains a concern. Employment growth is healthy. Considers all property rental growth to be at the peak of its cycle. Expects the rate of office rental growth to should slow over the next four years, but for retail property, expects 2007/08 to be the bottom of the cycle. Considers the sharp downward movement of commercial property yields seen over the last five years appears finally to have come to a halt. The UK commercial property sector has lost its risk premium over gilts and borrowing costs are now higher than property yields. Concerns about debt and borrowing and stock market volatility have caused a general re-rating of risk and higher investment risk premiums. Together with higher interest rates, expects this to put pressure on property investment yields. Forecasts total returns this year from direct property investment of 7.3%, and 4% in 2008.
GVA GRIMLEY ECONOMIC AND PROPERTY MARKET REVIEW UK
United Kingdom--
332.6324 $2 18