Long Harbour says UK residential real estate is mispriced versus European peers
XLRE•Macro comparisons and cross-border capital flows
It pointed to post-pandemic GDP growth of about 6% in the UK versus under 1% in Germany, with UK unemployment at 4.9%.
Cross-border investment into UK living sectors rose 55% last year, with EUR 22 billion deployed giving the UK 37% of EMEA volumes.
Long Harbour sees renewed case for UK residential real estate
Long Harbour flagged a renewed investment case for UK residential real estate as UK assets price off a high cost of capital.
It argued UK gilt yields embed an outsized risk premium, citing 10-year borrowing costs near 4.8% versus 3.7% in France.
The analysis said NIESR estimates gilts trade about 140 basis points above levels implied by the UK’s debt burden.
