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Sector trends

Real estate: investment stable amid market volatility

In Q1 2025, average commercial property asset values increased at an annualised rate of 2.55%.

The UK property market showed stability in Q1 compared to the volatile equity and bond markets. However, property valuations tend to lag real-world developments.

The real estate market is likely to be impacted by second or third order effects of the trade war.

Tom’s summary:

  • Investment liquidity remains very weak across the mainstream commercial sectors.

  • Living sectors have been slightly more active, with some notable regional Build to Rent deals completing in March.

  • Property Market Analysis, the real estate forecaster, expect values to rise moderately across all sub-sectors over the next three years.

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