2023-07-06-莱坊-Investment_Yield_Guide_July_2023_4页_492kb

Knight Frank Prime Yield Guide - July 2023 Summary

Introduction

This report is an indicative property yield guide for July 2023, prepared by Knight Frank Intelligence on July 5, 2023. It provides data on various real estate sectors, market sentiment, and related economic indicators.

Market Overview

The overall market sentiment is mixed, with most prime real estate sectors showing weakening trends or stability. Yields have generally decreased or remained stable across categories, except for a slight increase in City Prime yields. Key sectors include prime residential, retail, office, and industrial properties.

Sector-Specific Highlights

• City Prime (London): Yields increased slightly to 5.25%, indicating weaker sentiment despite a small rise.
• West End Properties: Prime Core yields rose minimally (+0.25%), while Non-core shows weakening.
• Major Regional Cities and Offices: Weaker sentiment persists, with yields declining in several sub-sectors.
• Life Sciences and Warehousing: Stable yields observed, particularly in prime distribution areas.
• Retail and Leisure: Sectors like retail parks and leisure showed stable or weakening trends, with concerns noted in inflation and rental costs.
• Offices and Data Centers: Both experienced weakening sentiment, with yields fluctuating slightly.

Key Trends and Indicators

• Inflation and Economy: Global inflation varies, with the UK at 8.7%. Economic sentiment in the Eurozone weakened, while UK businesses face concerns like high rental costs and energy prices.
• Bond Markets: Rates increased, with SONIA and Bank of England base rates climbing; bond yields showed upward trends.
• Climate Change: Progress in achieving net-zero carbon targets in the UK is lagging, requiring accelerated action.
• General Sentiment: Confidence declined across economic sectors, with subdued consumer sentiment.

Conclusion

The guide underscores a broad weakening in prime real estate yields, driven by inflationary pressures and economic uncertainty, while some sectors remain stable. For more details, refer to the full report or contact Knight Frank experts.