Good morning. Here is your AM bulletin with the latest from EG and some of the coverage from further afield.
Shares in UK REITS and housebuilders rallied yesterday, as better than expected inflation figures fuelled hopes that interest rates have peaked. British Land led the pack with a much-needed 10.34% rise.
The rally has prompted the question – could inflation in the UK be at a turning point(£)?
Whether it is or not, the industry needs solutions. It needs inspiration to mitigate the risks it faces both today and in the future. The time for talk is over, writes EG’s editor. Now is the time for action.
A glance across the Atlantic makes that all too clear. Commercial real estate investments were the driving force behind Goldman Sach’s $15.5bn Q2 hit.
And just under $72bn of commercial real estate in the US is in distress, with offices, at $24.8bn, overtaking retail and hotels for the first time.
Back in the UK, the Crown Estate has tripled the pay of its chief executive in the past three years. Dan Labbad is now paid almost £1.6m, up from £517,000 when he joined in 2019 – and almost £1m more than his predecessor Alison Nimmo.
In other news, more than 50,000 new senior-living homes need to be built every year, according to Knight Frank. Last year numbers were up, but only reached 8,000.
Olympian Homes has submitted plans for what could be the tallest building in Bristol, replacing the Haymarket Premier Inn.
And key office submarkets along London’s Elizabeth Line have shown record rental growth, with more than half of central London take-up so far this year within a 10-minute walk of a Crossrail station. Let’s call it the Lizzy Effect.
Savills’ eighth auction of the year has raised more than £40m, with lots including a five-bedroom house in West Kensington and a King’s Cross office block.
And the fall in inflation could lead to lower loan and mortgage rates within weeks.
As house prices rise at their slowest rate in nearly three years.
But residential rents rise to their highest level on record.
Chinese property tycoon Zhang Li has been let off a 20-year jail sentence after striking a deal with US prosecutors. He admitted to bribing a San Francisco building official to win permits for a construction project.
And even further afield, South Korea‘s financial watchdog is getting very nervous about a rise in overdue real estate loans.
And finally, in Somaliland, Minecraft is being used to get young people interested in remodelling public spaces(£). Apparently the kids can master the technology within a few minutes – no surprise there – and take great delight in creating beautiful and functional public realms. Hopefully without too many Creepers.
