Capital value growth to slow

Capital value growth is likely to have peaked in 2015, but further falls in yields and steady rental value growth will keep capital values rising in 2016 and 2017. Yet, there will be country and city-level differences. The Norwegian and Turkish markets are amongst this quarter’s largest downgrades, whilst Hungary has an improved outlook. We are also cautiously optimistic that Russia only has one more year of rental value falls to navigate.