ECB on hold: will commercial property in the periphery outperform?

A weak economic outlook for the euro-zone means that we do not expect particularly strong rental growth in the coming years. But, with interest rates on hold and bond yields expected to stay low, prime property in the region will see further yield falls until at least 2016. The peripheral markets stand to outperform due to a relative improvement in their economic outlook and their higher starting yields, which will support stronger income returns and more yield-driven capital growth.