Events in the euro-zone will act as a drag on property markets throughout Europe. As a result, most non-euro-zone commercial property markets will suffer some renewed falls in capital values this year, as growth drops below the rates needed to sustain occupier demand and thus rental values. Yields will also come under upwards pressure, but any increases are likely to be moderate. Emerging market returns will appear favourable thanks to the comparatively high level of yields, but those returns will look less favourable when risk-adjusted. Among developed markets, the UK and Sweden will fare best.
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