2023-09-18-莱坊-UK_Residential_Investment_–_Yield_Guide_September_2023_2页_240kb

Summary of Prime Yield Guide – September 2023

This report, prepared by Knight Frank Intelligence on September 13, 2023, provides indicative net initial yields (NIY) for prime, stabilized institutional-grade real estate assets in the UK. Yields are based on a rack rented property assumption, focusing on income-focussed transactions.

Key Findings:

• Overall Market Trends: Yields show slight increases across most sectors, with sentiment indicating weaker conditions in London markets. Fluctuations are minor but yield rises suggest downward pressure on asset values, though regional markets remain stable.
• London Markets: Prime London yields increased from 3.50% to 4.00%, linked to weaker sentiment. Zone-specific analyses (Zone 1 to Zones 3-4) yield up to 3.90%, with stable trends post-summer.
• Regional Markets: Prime Regional yields range from 4.75% to 5.00%, maintaining stable sentiment. Tiered city analyses show minimal change, with yields typically clustered around 4% for lower-tier regions.
• Special Sectors:
  • Student Property: Experienced yield increases (e.g., 3.25% to 4.00% for London), indicating weaker demand.
  • Co-Living and Seniors Housing: Showed stable yields around 4.50%–5.25%, with no significant changes or weakening signs.
    -Common themes: All sectors reflect market responsiveness, with London and student-focused assets showing vulnerability due to economic factors like interest rate hikes, while most regional areas maintain stability through buffered conditions.

For more details on investor perspectives or specific sector data, refer to the full report.