Economic indicators paint a mixed picture of the euro-zone recovery. On the one hand, the situation in the peripheral economies is improving. But at the same time, growth in the core economies appears to be faltering. As a result, there was relatively little upward pressure on rents in the second quarter. Nevertheless, increased sentiment regarding the region’s longer-term prospects has driven euro-zone property investment to a cyclical high, and yields edged down further as a result, providing a boost to capital values.
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