European Market Monitor Q1 2025

Inflation has fallen over 2025 to a level where the European Central Bank has started cutting policy rates – three 25bps cuts in February, March and April so far this year.

Long-income real estate involves buying the real estate asset and generating income through a long-term lease to a proven operator. With yields at relatively high levels compared to recent years, now could be a good time to consider investing.

The prospect of interest rates falling further from their recent highs is supportive of valuations, and indeed, we have seen improving returns in European real estate in recent quarters.

Credit spreads are at historic lows, which means the compensation for taking credit risk is lower than it has been. Long-income real estate can currently offer spreads that not only compensate for credit risk but also an attractive illiquidity risk premium.

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UK Market Monitor Q2 2026

Over the quarter, the nominal gilt yield curve shifted lower, falling by approximately 15 basis points (bps) at the short end and around 5bps at the long end.

UK Market Monitor Q1 2026

Over the quarter, the nominal gilt curve has shifted up by around 50 basis points (0.50%) on average across all maturities.

UK Market Monitor Q4 2025

Over the quarter, the nominal gilt curve has shifted down by around 25 basis points across the medium to longer maturities.