DWS: U.K. real estate strategic outlook

The U.K. economy has now entered a period of recovery, prompting a slow but steady upturn in the country’s real estate market, according to research from DWS. Looking forward, short-term challenges remain, but DWS believes there are longer-term opportunities. A Brexit trade agreement has to a large extent alleviated the uncertainty that has held back the U.K. real estate market since 2016, confidence is recovering and there is increasing evidence of international investors returning to the market. There has been a widespread and significant uptake of the COVID-19 vaccine, and in mid-July the U.K. government announced an end to all social distancing restrictions and a complete reopening of society.

Recovery under way

Following a challenging start to the year for much of the U.K. real estate market, there are signs that a recovery is now underway. According to the MSCI monthly index, average commercial property values increased by 3.5 percent over the