European Commercial Property
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Tentative signs of a turning point for property

All-property capital values rose for the third consecutive quarter in Q2, leaving them less than 1% below their pre-virus level. The improvement was driven by a decline in all-property yields, though rents also rose slightly on a quarterly basis for the first time since Q1 2020. The outlook is encouraging for occupier demand and investment in the coming quarters given economic activity is expected to rebound strongly. However, depressed tourist spending and online shopping will drag on the retail recovery. And higher vacancy and more remote working will limit the improvement in the office sector.
Andrew Burrell Chief Property Economist
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