UK Economic and Real Estate Briefing – May 2021
Better-than-expected recent activity suggests the economic momentum into the second quarter is likely to be much stronger than was initially expected.
For the real estate market there is evidence of prime yield compression in all sectors and more and more assets are being prepared for disposal to capitalise on improving investor sentiment.
Unofficial data now suggests we are headed for a much quicker rebound after the third lockdown than after the first.
The UK economy is on track to surpass pre-COVID GDP levels by the end of 2021.
Latest returns data from MSCI shows UK real estate market performance remains polarised, despite positive economic data.
12-month total returns jumped to 4.9% in April, suggesting property returns are on an upward curve after the -2.9% recorded nine months ago.