Long income market continues to outperform mainstream
The UK’s long income real estate market has outperformed the mainstream market for the last 12 quarters in a row, according to CBRE, following a resilient 2020 for the asset class.
The consultancy’s Long Income Index fourth quarter of 2020 report, published in March, has shown that long income returned 4.6 percent in 2020, compared to the mainstream real estate’s market return of –2.2 percent. Over seven years, long income returns have averaged 8 percent a year, ahead of the mainstream’s 7.5 percent.
Long income assets saw their values stabilise in the third quarter of last year and grow in the fourth quarter. Capital values rose 0.2 percent in the third quarter and 1.6 percent in the final quarter. In comparison, the mainstream market saw values fall by –0.9 percent in the third quarter and only rose by 0.2 percent in the final three months of the year.
CBRE’s index exceeds £16.7 billion (€19.6 billion) of assets, but the consultancy b