With yields continuing to fall, we believe that commercial property is over-valued against bonds, equities and the performance of the underlying occupier market. However, we believe yields will undergo an upward correction from around the second half of 2007, as debt-backed investors cease to make running profits. Even so, it is important to note that the rise in property yields will not be nearly as nasty as that of the early 1990s and will be achieved through rising rents rather than falling capital values.
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