Euro-zone property: are we underestimating small country risk?

Over the next two years, we expect the best performing euro-zone commercial property markets to be Greece, Finland and Portugal. All are forecast to deliver better total returns than core markets such as Germany and France. But have we under-estimated the degree of risk aversion among investors towards these smaller markets? Perhaps. But, if we are right and economic activity holds up relatively well, property markets in these three smaller economies should still outperform.