Sharpest fall in all-property values on record

Capital value falls accelerated in Q4 as euro-zone all-property yields surged higher. And although rents increased in both offices and industrial, the outsized jump in yields meant euro-zone all-property capital values fell by about 8% q/q – the sharpest quarterly drop on record. This decline took the total peak-to-trough fall in values so far to around 13.5%. And with rent growth slowing and further yield rises anticipated in H1, our forecast of a 15% peak-to-trough fall now looks optimistic.