UK Real Estate Navigator Q1 2024

UKRealEstate Navigator Knight Frank Q12024 AcuarteriyrevlewattheUKcommeiclalrealea:atem,rket kighi.ftank.tom/tusatch UKREALESTATENAVIGATOR Q12024 Knight Frank STFINCS SPECIALSTSECTORS REETAIL& INDUSTRIAL& DISTRIALITION OFFICES CAPITALMARKETS ECONOMICUPDATE Economicupdate GlobalaldUKeconoly CONTACT:VICTORIAORMOND,CEA UKREALESTATENAVIGATOR Q12024 BusinessActivityIndex ManutcturingPMI- ServioesPMI 65 60 40 Figurebelom50isconttactionery JulOct Jan Apr Jan Apr Jul Oct JanAor 2021 2022 2023 2024 Inflatlon AdvanosdEoonemiesCPI Emerging&DevelopingEconomiesCPI 15 13 10 2019 2020 2021 2022 2023 2024 c(r*ykng+"ra-l2eterc,Wx.*ckFg-l GLOBALBUSINESSACTIVITYPICKSUP TheGlshalSericrsPMlinerzasedto52.7inApril,IrenS2.1inMituh,remaining inesursjuiryLerriuryiligurealxo i)forthe16ihs11xesstvemnnrh. Mcanaritile.thetilecsalMsnufacturingPMImxderac50.3,dovnfromMa:h'sLDnunthhightl's0.6.HowuwcI. tisasitsilunthitekusjoit? rerrirry(figreahmve51. INFLATION:ABUMPYROADTO RECOVERY Acrossthec<rld.2h>alhea:lline infla:loncrnrlnuesdecllnefrnmItsFerk.albeir.tlhpaceatdisinlationhas slowxi.wihniscaundinllaicn surprissi.klutiukllyuvolvinggulx.gsopol'tlca.the(ohisunlikely15ibe 31l1cxoti.InrheI'uroArea,Inflstlo11 ryinedunchangxdiat2.1%,inAgril 2024.Muanhils,Usintaun2osulu? tusuntl>ussiveunthlw5eirMach.upfrom.i.2%inIehmrya-dIt? 1lghear.evelslnceNe[stemlxer21l2: Knight Frank ECONOMICUPDATE CAPITALMARKETS OFFICES INDUSTRIAL& DISTRIALITION RETAILS LEISURE SPECIALSTSECTORS DQMTACTS Globaleconomy Theglnbaleconommyshowssignsofresilience GLOBALOUTLOOK:SOFTYETRESILIENT Aga:stshackdrnn:iprmig xunuries.cvovinggepolititx,adancltFeittttotirgIaltik:s,thglobe.l onocntinusetkmstaleits restience,prirhgrngrhhnldingsreadya?intla.io1rerristncatg:t.Ith:lacsc IMfteras,globalGLPgrwLhisrowsullorisuuv+3.2%irtuuth2021:u2125 I'cnnnle:grcstl1xpecrarlolisfnrtl1eLshavecenupgradxifor2o21.The IFuItaStUSGDP-ogIowby-3.7. upuv+(lpsIrutitsIreviuusIui.stin.lanuary,Meangrhile,rhe"l:rerlseditsI:uroArea(),'grngrhforecastImwer Tur202-1,lovngtalingit'sy-10bp:Lis .8%.Fur2025.UhuIMIFuxpU:.stUS .Eun>AredewutkotnjesPruwIy1.y%andl11.5%.resxecrvely. Icspsit:glnlxalcc:ioinichca:dorinds. lasourmztk:ssrossuanygepgraphics einLigh.,ThUsnplcynurllral? Iell103,8%inMarhZu24,('ro3.9%in Ielvuaiy.InGemang.the unclmplory1ent.Tr:tearas5.9:Scrthc tthcursulivemunhEnAgri,tiniuuulowit8.3LT/ GrossDomestlcProduct (/uarl=rlUl:12cunlriet,trJgwih.>c.argeYa',sealxr:llyildjL-I:i 25 25 2019 2020 2021 2022 2023 2024 eauat'kh.hxkllaac"katn,Um.. UKREALESTATENAVIGATOR Q12024 GrossDomesticProdukt Juarlarl:OkG?6wll,ariueY?,u.:taulpries,sxrruldJstd 26 20 10 -15 20 7 2019 2020 2021 2022 2023 2024 .4-6u:.a1X BusinessActivityIndex nan JulOdt Jan Apr Ju OctJen AprJul Oct JanApr 2021 2022 2023 2024 cp..r,.>.- Inflation RPI 5 2019 2020 2021 2022 2023 2024 Ee:vghIFr2n-FecNchW:crsta*d-NS UKGDPEXPANDEDINFEBRUARY :JK1)]crperformedInr.ial:1ecrlens 1:X123,dspitefallingintc:accelnicalTussioninthe.zluer'.all'o..heyuar. HowuvI,ItUKhsLcelyulurgcd "6retessi>n1f)1274,Qn? r1othlyhaals.Gl>pevpadedhs10.3% i.lanuar,.2,inI'eryxnc.a Juritur+0.1%EnManre.n.Thurelore,L'.c woygrwUyO.GwuinQI Zr)74.psiting,ihetnresslmnitenteredin 1122023. ThIMFupdatdEt::forecystsin April2031.ILnuwxEtLsLhLK's:GLTtognby0.5sim3024,duwrslielrly frnmitsprevious1l.6'%srcosr-frtecast 1..Ianug1.I-or2125.the1M1exjectsrhe y[quwouY. Thekuuploylrites.oudl. 4.2'sinthethrtenustoFebruar? 21274.slightly11pfrnn3.9%.Inche qusrternrir,srer.Teima.icomcrtalolybe.oa:thcJung-uernacragcol'6.7%. BUSINESSACTIVITYIMPROVES T'-elikNerricasPilroxetoa12-mnitlighof'sn.n)inApril,upfrnm5..1in Malh,zncijtixhcpuscutivmunh i:sxprlsionlrylurritoryliguruabuvuSI), eanshi'e,theUkMamfacning IMJoderatedtn9.1inAaril.devnJiumviarrh's20:uonthhiehotS0.3. UKINFLATIONTOREACHTARGETINQ2 -JKinletinncaazc.coitslonwestLeve.in woanc.ahallycarsata.2%inhfz.relz 3C2-1,lowntroru3.4%iitcmunthrior,udueluwtle3,Rutuku. I'nglandinl'i'rieras:.T'risisthefirst cimcinflacicninchet.kns3concin telor:theUSsinseApril2022.0xlorc EurlomiuscspxtlukinllaliunLokrle.alesharplyin:heneaternas fallnganergsprkcestakeeffe:t.1JK i-fltinisxpcltyll1.9%,in2 202-land1.8%inQS30241,te.crurising to2.feebyitecnuot'uhuyuar. Withinflathnf>recastt>fall1tatsel 1-I1121124,i11ost.e.cncmisrsesnertrate cutsfromheBal,startinlune.vioncyTarketallrinulypricinginh(irsl utwuylintler-puintFitetulsinAug,ust,raklngrheI:aser9ttn4.75%Isytheeidrf2031. Knight Frank ECONOMICUPDATE CAPITALMARKETS OFFICES INDUSTRIAL&DISTRIALITICN RETAIL&LEISURE SPECIALSTSECTORS DQMTACTS UKeconomy Kiuflalic.nderaleI.oLh2.0%tageLinQ22024 UKREALESTATENAVIGATORQ12024 Knight CAPITAL MAHKETS OFFICES INDUSTRIAL& ONTACTS DISTRIALITICN RETAIL& LEISURE SPECIALST SECTORS ECONOMIC UPDATE Frank Capitalmarkets UKcommercialrealestate CONTACT:VICTQRIAORMQND,GEA ECONOMIC UPDATE APICK-UPINACTIVITYINH220247 TeshilnltwalJturcuvisttJulluukJerkmne'arylicyintektlerhal'fthe vuur,wrubinuuwithltesollu-irgnl suunlinswrapraitusaltltkcslurlufthvuar, uldel'uugeCKur: