Bull and Bear are back in the headmaster’s study, trying to justify why their start-of-the-year total return projections for property are proving to be so wide of the mark. Diverting the blame onto DT does not go down well.
Because of the sector’s on-going underperformance, the headmaster is contemplating cutting real estate out of his next strategic investment plan.
Our protagonists are flabbergasted at even the thought of property being relegated out of the top division and put up a rigorous retaliation. Even so, they acknowledge the consensus view that the hike in 10-year gilt yields and higher borrowing costs will drive the year-end return for 2026 to 5%, or even lower before recovering next year.