Our forecast for the economic recovery to maintain its momentum in H2 bodes well for occupier and investment activity. But while we think industrial rental growth will pick up, we still expect office and retail rents to end this year lower. Beyond 2021, while we expect rents to return to growth across all sectors, large supply pipelines and structural changes will keep a lid on rental growth. And with bond yields trending higher on the back of monetary policy normalisation, we expect broad-based property yield rises from 2023 across all sectors. We therefore think capital values will barely grow over the next five years. As a result, total returns will be driven by income returns, with retail overtaking industrial as the strongest sector after this year.
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