Non-euro-zone European economies will not be immune to a fresh recession in the euro-zone. We expect all economies in the region to undergo a sharp slowdown in growth or worse. Barring perhaps Poland, Russia and Turkey, we do not think that occupier demand for commercial floorspace will be strong enough anywhere to prevent a renewed downturn in rental values this year, while uncertainty over the economic outlook will add to upwards pressures on property yields. We expect capital values in all non-euro-zone markets to fall over the next couple of years. But the high income returns on offer in Emerging Europe mean that some markets in the region may record moderately positive total returns. The same cannot be said for property markets in the West.
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