Skip to main content

Economic slowdown feeding into slower rental growth

Slower growth in both developed and emerging economies has started to filter through into property occupier markets, with office demand generally lower than a year ago and fewer cities registering rental value increases in the retail and industrial sectors in Q2. Indeed, retail rents are falling in Scandinavia, although they remain elevated relative to history. Nevertheless, investment volumes have staged a recovery in Scandinavia and in the core CEE markets. With valuations having improved in light of the lower bond yield environment, we think that office and industrial yields could still fall further, but in the retail sector, the likelihood is that yields have already reached a floor.

Become a client to read more

This is premium content that requires an active Capital Economics subscription to view.

Already have an account?

You may already have access to this premium content as part of a paid subscription.

Sign in to read the content in full or get details of how you can access it

Register for free

Sign up for a free account to gain:

  • Unlock additional content
  • Register for Capital Economics events
  • Receive email updates and economist-curated newsletters
  • Request a free trial of our services


Get access