Capital values look set for their strongest annual gain since the crisis

Compared to our last Analyst, we have moved up our rental growth forecasts for 2015 and 2016, reflecting limited development pipelines and upgrades to our macroeconomic forecasts. The rental upgrade for this year, combined with our expectations for further yield compression, means that euro-zone commercial property capital values look set to record their strongest annual gain since the crisis. Furthermore, capital value growth across most peripheral markets should continue to gather momentum.