REIF in brief Q3 2013

Colliers forecasts have been upgraded primarily on the back of an improvement in market conditions.

The economic recovery is becoming increasingly entrenched and improved sentiment and activity is already apparent in occupational and investment markets across the UK.

RESEARCH SUMMARY: 

>   Forecasts revised up across all sectors 

>   Capital growth drives total returns 

>   Rental growth to return in 2013, but not expected to contribute meaningfully until 2014 

>   Offices are expected to be the best performing sector with double-digit returns over the next 5 years 

Capital growth remains the primary driver of returns as we expect weight of money to compress yields by year-end. Rental growth is expected to contribute meaningfully by 2014 onwards. A strong rental growth/yield compression profile makes offices our best performing sector over the next five years with total returns in excess of 10% pa.