Interest rate rises still to be felt in UK real estate

Investor demand for UK offices remains weak amid a poor outlook for the sector and pockets of distress are expected to appear in the office sector this year. Meanwhile, in the residential sector, we are likely to see a further slowdown in activity during the summer months, says abrdn. Yet, improved sentiment returned to the industrial and logistics sector during the second quarter of 2023, as pricing and performance demonstrated tentative signs of stabilisation and the retail sector remains resilient.