Capital watch: Investor pricing survey

Prime UK yields have stabilised but secondary yields are still compressing, according to this latest Colliers International and Real Estate Capital Pricing Survey.

Having called total returns almost bang on in the last survey, at 18.6%, respondents raised their 2015 predictions to 13.6%, driven by more capital and rental growth. Single-figure total returns are expected in 2016.

Despite worries about low interest rates making property overpriced, investors seem sanguine about the UK General Election in May and the prospect of deflation in Europe.

The survey, carried out three times a year by Dr Karen Sieracki of KASPAR Associates and in its 21st year, provides analysis of the industry’s capital and rental growth expectations

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