The recovery in European commercial property values is slowing and we think this will continue as soft economic growth weighs on rents and elevated interest rates limit yield-driven capital gains. Near-term strength in prime rents will support office total returns, but we expect this to wane further ahead. That will leave industrial the outperformer over 2026-2030, given solid rental prospects and high income returns. Overall, we forecast euro-zone industrial returns of almost 8% p.a. over 2026-30, compared with 6.5% for offices and 6% p.a. for lower-yielding retail.
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