AIC's Annabel Brodie-Smith: Do not miss the REITs rebound

Sizeable bounce when rates are cut

clock • 5 min read

The headwinds faced by the UK commercial property market have been well documented during the past couple of years.

Rising interest rates, attractive relative returns from the bond market, and the rising cost of debt all combined to help bring asset prices down by an average of 22% in the 18  months following the market peak in 2022, according to Deutsche Numis, the research house. Most offices fared worse, with price declines of around 30%. Deep Dive: REIT sector focus matters even as sharp discounts abound Share prices of UK REITs reacted accordingly, with average discounts expanding to nearly 25% as demand slumped. Now, 18 months later, there are signs the tide is beginning to turn. The...

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