ECB QE to drive European commercial property yields lower still

The real impact of the ECB’s new QE programme on GDP growth and occupier demand will initially be stymied by the Greek election results and the ensuing debt re-negotiations. However, investors will be further driven from low-yielding fixed income assets into real estate, particularly in the core euro-zone markets and non-euro-zone markets. Thus, stronger competition for relatively limited prime product could drive an additional 10bps fall in prime yields in 2015.