Three-quarters of office markets overvalued

The number of European property markets that appear to be overvalued continues to rise. With prime property yields still edging lower and government bond yields higher in Q3, the majority of markets recorded a deterioration in valuation scores. What’s more, valuations in three-quarters of office markets look stretched. A recent easing in government bond yields could see the relative valuation of property improve in the final quarter of the year, but any improvement is unlikely to be long lasting.