UK Real Estate Navigator Q1 2024

Q12024 A cuarteriy revlew at the UK commeiclal real ea:ate m,rket Economic update Global ald UKeconoly CONTACT: VICTORIAORMOND,CEA Global economy The glnbal econommy shows signs of resilience GLOBAL OUTLOOK: SOFT YETRESILIENT Gross Domestlc Product Aga:st s hackdrn n: iprmigxunuries. cvoving gepolititx, ad ancl t Feittttotirg Ial tik:s, th globe.lrestience, prirh grngrh hnlding sready a?ono cntinus etkmstale itsIMf teras, global GLP grwLh is rowintla.io1 rerris tn catg:t. I th: lacscsul lo risu uv +3.2% irt uuth 2021 :u2125 (/uarl=rl Ul: 12 cunl riet, trJ gwih. > c.arge Ya', sealxr :lly ildjL-I:i I'cnnnle: grcstl1 xpecrarlolis fnr tl1eLs have cen upgradxi for 2o21. TheIF uItaSt US GDP -o gIow by -3.7.in.lanuary, Meangrhile, rhe"l: rerlsedup uv +(lps Irut its Ireviuus Iui.stits I:uro Area (),'grngrh forecast ImwerTur 202-1, lovngtaling it'sy -10bp: Lis.8%. Fur 2025. Uhu IMIF uxpU:.s t US. Eun> Ared ewutkotnjes Pruw Iy1.y% andl 11.5%. resxecrvely. Icspsit: glnlxal cc:ioinic hca:dorinds.lasour mztk: s sross uany gepgraphicsein Ligh., Th Us nplcy nurll ral?Iell 10 3,8% in Mar h Zu24, ('ro 3.9% inIelvuaiy.In Gemang.theunclmplory1ent. Tr:te aras 5.9: Scr thctth cursulive munh En Agri,tiniu uulow it 8.3 LT/ GLOBAL BUSINESS ACTIVITY PICKS UP The Glshal Sericrs PMl inerzased to 52.7in esursjuiry Lerriury iligure alxoin April, Iren S2. 1 in Mituh, remainingi) for the 16ih s11xess tve mnnrh. Mcanaritile. the tilecsal MsnufacturingPMI mxderac 50.3, dovn fromMa:h's LD nunth high tl's0.6. HowuwcI.tis as its il unth it ekusjoit?rerrirry (figre ahmve 51. INFLATION: A BUMPY ROAD TORECOVERY Across the c<rld. 2h>al hea:llineinfla:lon cr nrlnues decllne frnm ItsFerk. albeir. tlh pace at disinlation hasslowxi. wih nisc aund inllaicngsopol'tlca. the (oh is unlikely 15i besurpriss i.kl utiuklly uvolving gulx.31l1cxoti. In rhe I'uro Area, Inflstlo112024. Muanhils, Us intaun 2osu lu?ryined unchangxdi at 2.1%, in Agriltu suntl >ussive unth lw 5e irMach. up from.i.2%in Iehmrya-d It?1lghear. evel slnce Ne[stemlxer 21l2: UK economy K iuflalic . nderale I.oLh 2.0% tageLin Q2 2024 UK GDP EXPANDED IN FEBRUARY : JK 1)} crperformed In r.ial :1ecrlens1: X123, dspite falling intc: a ccelnicalTussion in the .zluer '.all'o. .he yuar.HowuvI, It UK hs Lcely ulurgcd"6 retessi>n 1 f)1 274, Qn ?r1othly haals. Gl>p evpaded hs 10.3%Juritur +0.1% En Manre.n. Thurelore, L'.ci. lanuar, .2, in I'ery xnc. awoy grw Uy O.G wu in QIZr)74. psiting, ihe tnresslmn it entered in112 2023. Gross Domestic Produkt Juarlarl: OkG?6wll, ariue Y?, u.:taul pries, sxrrul d Jstd Th IMF updatd Et: : forecysts inApril 2031. IL nuw xEtLs Lh LK's: GLTto gn by 0.5s im 3024, duwr slielrlyfrnm its previous 1l.6'% srcosr - frtecast1. .Ianug1. I-or 2125. the 1M1 exjects rhey[ q u wou Y. 4.2's in the thrte nus to Februar?The k uuployl rite s.oud l.21274. slightly 11p frn n 3.9%. In chequsrter nrir, srer. Teima.i comcrtalolybe.oa: thc Jung-uern acragc ol' 6.7%. BUSINESS ACTIVITY IMPROVES T'-e lik Nerricas Pil roxe to a 12-mnitligh of'sn.n) in April, up frnm 5..1 inMalh, znci jt ix h cpuscutiv munhi: sxprlsionlry lurritory liguru abuvuSI), eanshi'e, the Uk MamfacningIMJ oderated tn 9.1 in Aaril. devnJium viarrh's 20 :uonth hieh ot S0.3. UK INFLATION TO REACH TARGETIN Q2 -JK inletinn caazc. co its lonwest Leve. inwo anc. a hall ycars at a.2% in hfz.relz3C2-1, lown troru 3.4% i itc munthrior, ud ueluw tle 3, Rutuk u.I'ngland inl'i 'rieras:. T'ris is the firsttelor: the US sinse April 2022. 0xlorccimc inflacicn in che t.k ns3 conc inEurlomius cspxtl uk inllaliun Lokrle.ale sharply in :he neat ern asfa llng anergs prkces take effe:t. 1JK202-l and 1.8% in QS 30241, te.cru risingi-fltin is xpcl tyll 1.9%, in 2to 2.fee by ite cnu ot'uhu yuar. With inflat hn f>recast t> fall1 tatsel1- I 11 21124, i11ost. e.cncmisrs esnert ratecuts from he Bal, start in lune. vioncyTarket al lrinuly pricing in h (irslu twu ylintler-puint Fite tuls in Aug,ust,raklng rhe I:ase r9t tn 4.75% Isy the eidrf2031. Capital markets UK commercial real estate CONTACT: VICTQRIA ORMQND, GEA Capital markets The UK was the inost invested market for overseas capital in Qi 2o24 for All Property LIVING SECTORS #1 IN Q12024 UK quarterly imvestment volumes T'-e tiK remalned r.he 3ecnnd m nsr1-vcsted markcr gleballs in Q1 2021 a.-d[ c,dSirilarly, Lurlunl as th tep glutalcrogs-l>nder iteins in Q1. 1l(wevet,mlumes liave m ndea rared reflertlngoriclet glnbal maernecncrei: lhaadwindsaud elevaed linanting usls. UK wtintonial rual wtite iCRE:1vesimeat 1talled1 2:9.6bn in 1 21774.2>23. d -11%, contractin on Q1 r23, an3I'-is wa3 -2:s. dinprn nn ilvas:imel1t il 430% bulow thu QL lung lurm alvutagHuxeer, Glulxn :-23%1 . Europeni-2zs CR invesrnent sew largerd:ellnes Ycy The L.iving Seclurs ie2.0hni wer: th:?fouvetl bv Re-ail :r2.obnj, Intlustrialost j:vsl:xl suulu: in Q1 2024. Ttis wi2:1.Nlsni, "lotels (r.1.7l>ni. f>ff res i2:1.7h1)al1d Xeninr 1Lcus1g & gre (c.7hi1).HLe (+221*, Suior Huusing & Cr(+137%)