Euro-zone Commercial Property Outlook Slower yield rises but values to fall further as rents stagnate With valuations still highly stretched and rent growth likely to slow as the region falls into recession, we think capital values will fall further in 2023. While the 4.5% decline forecast at the all... 24th March 2023 · 3 mins read
Euro-zone Commercial Property Outlook Values to fall sharply as yields rise and recession hits Higher interest rates have already resulted in a sharp property repricing in 2022. And with valuations still highly stretched and rental prospects weaker given the imminent recession, we think values... 9th December 2022 · 33 mins read
Euro-zone Commercial Property Outlook Mild correction, but soaring inflation poses downside risks The economic backdrop has deteriorated, with the euro-zone set to enter recession this year, while inflation has continued to beat expectations. This will weigh on property demand across all sectors... 16th September 2022 · 33 mins read
Euro-zone Commercial Property Outlook Rising interest rates to speed up property correction The weaker economic outlook and larger increases in interest rates are expected to weigh on property performance. With valuations under increasing pressure from sharply rising bond yields, we think... 23rd June 2022 · 31 mins read
Euro-zone Commercial Property Outlook War in Ukraine adds to uncertainty; retail most at risk While the direct impact of the war in Ukraine is likely to be small, we think there will be indirect consequences for euro-zone commercial property markets. Economic growth is expected to be slower... 18th March 2022 · 31 mins read
Euro-zone Commercial Property Outlook Omicron poses near-term downside risk to property recovery The near-term economic outlook has weakened, with the Omicron variant posing further downside risk. Meanwhile, inflation is likely to be higher for longer. However, we expect it to fall back by 2023... 9th December 2021 · 30 mins read
Euro-zone Commercial Property Outlook Sector fortunes to shift While the Delta variant has slowed economic activity in other parts of the world, this has not yet been the case in the euro-zone, and we are cautiously optimistic that the bloc will continue to grow... 16th September 2021 · 31 mins read
Euro-zone Commercial Property Outlook Economies reopening but headwinds remain for property The easing of virus restrictions has brightened the economic outlook and prospects for occupier markets. And with rises in inflation expected to be temporary, we think monetary policy will remain... 18th June 2021 · 30 mins read
Euro-zone Commercial Property Outlook Pandemic hit mild by past standards, but recovery slow Euro-zone prime property will likely get off more mildly than many expected at the start of the pandemic. We forecast another small fall in all-property capital values this year, with yields holding... 18th March 2021 · 31 mins read
Euro-zone Commercial Property Outlook Structural factors to hold back office and retail recovery Although the near-term economic outlook remains weak, vaccine developments pave the way for a rebound in mid-2021. However, we think that the rental recovery in property markets will be more gradual... 10th December 2020 · 31 mins read
Euro-zone Commercial Property Outlook Slower recovery in values given weaker office outlook As widely expected, Q2 brought a range of disappointing data, from plunging investment volumes to further falls in retail rents. And while property values outside of retail have generally held up so... 18th September 2020 · 32 mins read
Euro-zone Commercial Property Outlook Property values will fall sharply, but won’t reach GFC lows Thin deal evidence and market uncertainty has meant that the disruption from the virus has been slow to feed through to property values. However, significant falls in economic activity in H1 and... 19th June 2020 · 32 mins read
Euro-zone Commercial Property Outlook COVID-19 to hit property values by at least 8% in 2020 The ever-changing economic effects of COVID-19 mean that the impact on real estate markets is highly uncertain. It is clear that the sharp contraction in economic activity and deterioration in... 20th March 2020 · 25 mins read
Euro-zone Commercial Property Outlook Lower yields to support capital values We expect a further slowdown in euro-zone economic growth in 2020 to weigh on rental growth. However, with interest rates set to be cut next year and remain at this low level, there isn’t likely to be... 5th December 2019 · 30 mins read
Euro-zone Commercial Property Outlook Further falls in yields to sustain capital value growth With the euro-zone slowdown underway, we think that the ECB will loosen monetary policy before the year is out, meaning bond yields are set to remain negative for some time. As a result, yield... 11th September 2019 · 30 mins read
Euro-zone Commercial Property Outlook Total returns set to be sharply lower With the ECB likely to loosen monetary policy before too long, government bond yields look set to stay at very low levels for some time. As a result, we think that yield compression has a little... 18th June 2019 · 1 min read
