Too soon to look for a recovery in peripheral markets

Since our previous Analyst we have become a little more optimistic about the potential for returns in some of the core euro-zone commercial property markets such as Germany, France and Belgium, as well as in Finland. But the outlook for returns in the euro-zone’s troubled peripheral economies has deteriorated in recent months. Overall, driven mostly by the income component, we expect returns across most of the region to average no more than 8% over the next two years.