The UK industrial property values have fallen by approximately 26% in 6 months. Since 2008, there has never been such a loss of value in such a short period of time. However, since 2022, the yields on industrial property has increased by more than 120 basis points. Quarterly rental growth remained positive for hotel, office, residential and industrial property, according to the index. A 12.8% drop in all-property capital values in the last three months of 2022 was the major drag on performance as high inflation, rising interest rates and a higher cost of capital all impacted the market.
Is there a sector being affected more than another in this time? Is it looking up for the future?