Euro-zone all-property returns total almost 9% in 2021

Euro-zone commercial property markets ended 2021 on a stronger note. Prime rental growth picked up in the office and industrial sectors, while retail rents held steady for the third consecutive quarter. Combined with further declines in property yields, all-property capital value growth grew at the fastest annual pace since early 2020.  This momentum should continue in the near term. But the market is likely to come across more headwinds later in the year, as slower economic growth and structural changes weigh on rental growth, and rising bond yields limit the scope for further yield declines.