{"id":1004633596,"date":"2022-11-29T04:13:51","date_gmt":"2022-11-29T12:13:51","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004633596"},"modified":"2022-12-09T02:55:44","modified_gmt":"2022-12-09T10:55:44","slug":"examining-uk-real-estates-worst-quarter-since-2009","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/examining-uk-real-estates-worst-quarter-since-2009\/","title":{"rendered":"Examining UK Real Estate\u2019s Worst Quarter Since 2009"},"content":{"rendered":"

For first time since 2007, UK bonds yielded more than property<\/h2>\n
\"\"<\/a>

Source: Bank of England, MSCI<\/p><\/div>\n

Weakening yields\u2019 negative impact across sectors<\/h2>\n
\"\"<\/a>

Source: Bank of England, MSCI<\/p><\/div>\n

Following its recent sharp rise, the 10-year U.K. government bond-yield<\/a> has risen above the net-operating-income (NOI) yield of U.K. real estate for the first time since 2007. The evaporation of property\u2019s yield premium \u2014 amid the recent deteriorating macroeconomic outlook and rising inflation and interest rates \u2014 weighed on performance to the extent that the MSCI UK Quarterly Property Index in the third quarter recorded its worst return since the second quarter of 2009.<\/p>\n

In Q3, property yields rose by 20 basis points (bps) to 4.1 percent but remained below the previous low of 4.6 percent measured in Q2 2007. This was after the index\u2019s NOI yield had reached a since-inception low in Q2, following a secular decline in the years since the end of the 2009 global financial crisis. By the end of September, only the retail sector\u2019s NOI yield offered a premium to the government-bond yield, while the yield on industrial property remained 80 bps lower than that of the 10-year U.K. government bond.<\/p>\n

As property yields start to drift up rather than compress, they pull property values down, rather than contribute to their growth. The all-property yield impact turned negative in the third quarter, after eight consecutive quarters of enhancing returns. This turnaround was most dramatic in industrial, where the sector experienced a double-digit swing into negative territory.<\/p>\n\n\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

By the end of September, only the retail sector\u2019s NOI yield offered a premium to the government-bond yield, while the yield on industrial property remained 80 bps lower than that of the 10-year U.K. government bond.<\/p>\n","protected":false},"author":1805,"featured_media":1004633597,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[37754],"tags":[],"class_list":["post-1004633596","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-research-center-global"],"acf":[],"yoast_head":"\nExamining UK Real Estate\u2019s Worst Quarter Since 2009 - Commercial Property Executive<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.commercialsearch.com\/news\/examining-uk-real-estates-worst-quarter-since-2009\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Examining UK Real Estate\u2019s Worst Quarter Since 2009\" \/>\n<meta property=\"og:description\" content=\"By the end of September, only the retail sector\u2019s NOI yield offered a premium to the government-bond yield, while the yield on industrial property remained 80 bps lower than that of the 10-year U.K. government bond.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.commercialsearch.com\/news\/examining-uk-real-estates-worst-quarter-since-2009\/\" \/>\n<meta property=\"og:site_name\" content=\"Commercial Property Executive\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/CPExecutive\" \/>\n<meta property=\"article:published_time\" content=\"2022-11-29T12:13:51+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-12-09T10:55:44+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2022\/12\/1222_CPE_global.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"800\" \/>\n\t<meta property=\"og:image:height\" content=\"569\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Niel Harmse\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cpexecutive\" \/>\n<meta name=\"twitter:site\" content=\"@cpexecutive\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/examining-uk-real-estates-worst-quarter-since-2009\/\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/examining-uk-real-estates-worst-quarter-since-2009\/\",\"name\":\"Examining UK Real Estate\u2019s Worst Quarter Since 2009 - 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