Further monetary easing from the ECB is unlikely to be decisive enough to put the euro-zone on a stronger growth trajectory, implying that the outlook for occupier markets is subdued. Nevertheless, with euro-zone bond yields set to stay lower for longer, there seems scope for property yields to harden further, thus providing a boost to capital values. The outlook for total returns seems strongest in the industrial sector and in peripheral economies, where yield compression to date has so far lagged behind core office and retail markets.
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