My subscription
...
Filters
My Subscription All Publications

Emerging Europe: All-property values jump in Q4

Sharp falls in property yields and an improvement in rental growth pushed CEE all-property values in Q4 up almost 5% q/q, the strongest quarterly growth rate since 2007. This was largely driven by the strength of industrial, but office values also increased strongly. Property values are likely to rise further in 2022, but at a slower pace. Decelerating economic growth, large supply pipelines and structural changes will limit rental growth. And further rises in interest rates and bond yields means that the turning point for property yields is getting closer. That said, the downside risk to Moscow property has greatly increased with the invasion of Ukraine. Note: Russia-Ukraine Drop-In (today at 09:00 EST/14:00 GMT): We’re holding an online briefing on the crisis and its economic and market impact today at 14:00 GMT. Register here.  
Amy Wood Senior Property Economist
Continue reading

More from European Commercial Property

European Commercial Property Update

Support from flexible office demand in CEE to wane

Comparatively strong demand from flexible offices has helped the CEE occupier recovery from the pandemic. But a more limited flex pipeline this year means it is not likely to provide much offset to the weakening employment prospects in the region.

9 August 2022

European Commercial Property Update

German office market at a turning point?

German prime office yields jumped in Q2 amid early signs that the weakening economic outlook is weighing heavily on the office market. And while there were strong rental gains in the first half of the year, we think growth will slow as economic headwinds keep a lid on occupier demand and vacancy rates continue to climb.

5 August 2022

European Commercial Property Update

Better transparency provides little respite for yields

While encouraging for the property risk premium, better transparency across Europe is unlikely to provide much support for property yields given the deterioration in the economic and interest rate environment. This is even the case for Emerging European markets, where recent transparency improvements have the most scope to support yields.  

2 August 2022

More from Amy Wood

European Commercial Property Update

Will prime rents offer inflation protection?

Our forecasts suggest that prime all-property rental growth across the main euro-zone markets is likely to keep pace with inflation in the coming years. However, this is more of a reflection of expected demand and supply conditions, than an indication that rents provide lasting inflation protection.

14 February 2022

European Commercial Property Update

Good times over for industrial rents in major ports

While the recent improvement in world trade is encouraging for industrial demand in the major port markets, we don’t expect an acceleration in rental growth this year. Supply bottlenecks will still take time to unwind and the low availability of space and affordability constraints mean that alternative locations will also become increasingly attractive for some occupiers. This supports our view that industrial rental growth in the major port markets will do no better than the euro-zone average in the coming years.

3 February 2022

European Commercial Property Update

Pandemic not the only risk to Stockholm property

While we think the direct risks to property from the pandemic have reduced, the uncertain impact of structural change and our expectation that interest rates will now be increased from late this year reinforce our view that Stockholm property returns will be weak over a five-year horizon.

28 January 2022
↑ Back to top