<p>Sample text here...</p>
Dear readers,
“The general outlook remains stark with economies enduring inflation and recession resulting from a variety of global issues. Combined with recent stormy political events in the UK and the swift and sharp reactions this has caused, it is fair to say that Q3 2022 has been more turbulent and uncertain than ideal. The new, new government appears to enjoy more market confidence and a general belief in its ability to handle the most pressing economic and social issues. Meanwhile, the Bank of England took a significant interest rate step in November by raising the prime rate by 0.75 points to 3.0 %.In line with these events, the real estate industry has been quieter with many investors pausing and re-evaluating investment decisions in Q3 and little change anticipated for Q4. Overall, we expect the coming year to be quieter as investors and lenders work through their strategies in the changed economic environment. However, opportunities remain for long dated income, offices with strong ESG criteria and residential, with logistics also remaining of interest to UK investors.”
Claudia Nacke
Contact
Ms Claudia Nacke
Head of Real Estate Finance UK, London Branch
Phone: +44 20 742 947 00
E-mail: Claudia.Nacke@DeutscheHypo.com
The UK real estate index continued its downward trend in the third quarter. It began the period with a 3.3 % decline in July, but then increased slightly by 1.2 % in August, before falling again by 4.3 % in September to produce an overall performance of -6.4 % at the end of the third quarter. The REECOX UK therefore stands at 189.5 points after suffering the second sharpest slide compared with the other European countries.
The FTSE EPRA/NAREIT UK real estate index posted a significant loss in the third quarter. Following slight declines in July (2.4 %) and August (1.0 %), the downturn peaked in September with a plunge of 21.5 % to 869.6 points. The FTSE 100 blue-chip index also showed a negative trend. Its initial gain of 3.5 % in July was erased by declines in August (1.9%) and, in particular, September (5.4 %). Overall, the index fell by 3.8 % in the third quarter to around 6,894 points. Economic expectations, as reflected by the Economic Sentiment Indicator (ESI), remain negative. The ESI closed the quarter at 85.0 points, down 7.4 % on Q2.
Country | Stock Index | Real Estate Economy Index | Economic Indicator | Base Interest Rate | Interest Rate 10-Year Government Bonds | Q2-22 | 07/22 | 08/22 | Q3-22 | Delta (%) Q2-22 / Q3-22 |
|---|---|---|---|---|---|---|---|---|---|---|
DE | do | dodo | dodo | eq | upup | 289.8 | 289.2 | 278.1 | 258.9 | -10.7 |
GB | do | dodo | dodo | upup | upup | 202.5 | 195.8 | 198.1 | 189.5 | -6.4 |
PL | dodo | do | dodo | upup | up | 183.1 | 181.9 | 179.4 | 175.1 | -4.4 |
NL | do | do | dodo | eq | upup | 184.8 | 189.5 | 183.2 | 175.8 | -4.9 |
FR | do | do | dodo | eq | upup | 225.6 | 231.9 | 227.5 | 219.3 | -2.8 |
ES | dodo | do | dodo | eq | upup | 178.4 | 174.9 | 175.3 | 172.9 | -3.1 |
