MSCI: U.K. industrial property post positive returns in Q2
U.K. industrial properties were the best performers among the major commercial real estate sectors in April through June compared with the previous three months, posting 2.1 percent total investment returns through a small capital growth return and positive income growth, according to the MSCI Real Assets’ UK Quarterly Property Index. By contrast, office properties generated -3.1 percent returns in the second quarter.
U.K. commercial real estate investments as a whole generated positive total returns of 0.2 percent in the second quarter of 2023 compared with the preceding three months.
The second-quarter capital return for U.K. commercial real estate was -0.95 percent in the quarter as appraisal values of properties declined, while the income return (rental income) was 1.13 percent in the quarter.
The rapid adjustment in valuations in the latter half of last year, however, ensured that over 12 months there was a negative total return of -15.3 percent for U.K.