Upbeat UK CRE Forecasts | Construction Costs | Windfall Tax
Discover key economic and financial metrics, and what to look out for in the week ahead.
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Here we look at the leading indicators in the world of economics. Download the dashboard for in-depth analysis into commodities, trade, equities and more.
UK CRE forecasts surprisingly upbeat
The IPF’s consensus forecast expects 10.2% UK All Property total return this year, up from 8.6% previously forecast in February. All Property capital value growth (5.9% vs 4.1%) and average rental growth (3.2% vs 2.5%) forecasts are also more upbeat in May than they were in February.
Not all central banks are hiking rates
While we have seen over 60 interest rate hikes globally from central banks over the past three months, some are bucking the trend. The Bank of Japan has committed to holding rates neutral at 0%, while the Bank of China has cut its one-year loan rate by 10bps to 3.7% and the Bank of Russia has cut its interest rate three times over the past few months. Central bank interest rate decisions have caused fluctuations in currencies, which we monitor on pg. 4 of the dashboard.
Windfall tax to impact infrastructure investment?
The UK government’s implementation of a tax on oil and gas profits has raised concerns for future renewable energy infrastructure investment. As an underlying issue, it highlights the need for energy efficient real estate and infrastructure. We have found that both occupiers and investors are willing to pay a sales price or rental premium for green rated real estate assets.
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