Still a weight of money in the markets

The only thing anyone cool has been talking about for the last year is obviously…. drumroll please… inflation. Now down to a sweet 4.0% many believe this will continue to fall through 2024 unless significantly impacted by external geopolitical tensions.

On the back of these expectations there’s now a feeling that interest rates could follow suit and hit 4.0% by the end of 2024 (a 1.25% drop), clearly an optimistic sign for real estate investors who have had to endure a highly stagnated environment for the last 12 months.

With news that global funds are ready and waiting to invest in UK real estate and hopes of a reduction in pricing disparities between vendors and purchasers we expect to see a significant increase in activity towards the end of 2024 as rates fall.

For global fund investors looking to invest in UK real estate, ESG was core to their investment strategy with a focus on energy-efficient upgrades, smart building technology, and green building certification. Anyone thinking of disposing of assets in 2024 or beyond should make sure their asset management strategy is ESG-led. It’s more important than ever to be able to provide a potential investor with information on where an asset is on its ESG journey and what future investment looks like from a cost perspective and an ESG perspective.

At IDRE we are able to help with analysing and appraising the cost benefits to carrying out the works, providing a landlord with an asset that has either started or significantly progressed their ESG journey, at the time of disposal. This allows a vendor to provide a purchaser with clear data on the current asset and an obvious path to any further improvements to further reduce emissions.