Anne Breen, head of property research at Standard Life Investments, explains why forecasts are predicting healthy returns for many markets including the UK.
Over the course of the last year consensus views of the outcome for real estate returns in 2010 and 2011 have been reasonably volatile. One of the more visible measures of these expectations has been pricing in the derivative markets. At the start of last year, prices suggested just a modest uptick in capital values for 2010 and a reasonably soft decline in 2011. As actual prices rallied, by 6% in the first six months, derivatives pricing became increasingly negative on the second half of the year and into 2011. Through this period our own views remained resolute as we anticipated only a...
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