cluttonsim.com COMMERCIAL PROPERTY EXAMINER QUARTER FOUR | 2020 Cluttons Investment Management Commercial property examiner | Q4 2020 1. KEY TAKE AWAYS The UK’s commercial real estate market has Ultra-low risk free rates and a low outlook been far more resilient in the face of the for interest rates remain supportive of real pandemic than was first feared in March and estate investment. April after the introduction of Lockdown 1.0. In the 12-months to the end of December All Property total returns could recover to 2020, All Property total returns decreased to +5% in 2021 and an annualised average of -1.0% from 2.1% in 2019. 7% in the 3 years ending December 2023.
[email protected] © Cluttons LLP 2021 – 2788 | 0221 cluttonsim.com | 2 Cluttons Investment Management Commercial property examiner | Q4 2020 2. SUMMARY The World Bank expects global economic Stock markets across the world celebrated All Property investment volumes increased output to expand by 4% in 2021 but at the authorisation of the first vaccines and by 21% in Q4 but nevertheless remained end of the year will still be more than 5% prospects of a return to normality. The UK 16% below their long run average. Total below its pre-pandemic level. Global growth equity markets rose 11% in Q4 but still investment volumes in 2020 were the lowest is projected to moderate to 3.8% in 2022, ended the year down 14%. The NASDAQ since 2012. weighed down by the pandemic’s lasting index ended the year 44% higher as investors damage to potential growth.