Residential rent growth is set to slow over the next couple of years as wage growth moderates, but we expect it to remain above past averages given tight supply conditions. Meanwhile, we think yields will hold broadly steady over the forecast, although they may rise in France. This would leave European residential returns at around 5.5-6% p.a. over 2026-30, with the Netherlands outperforming and France disappointing.
We’re hosting a 20-minute online briefing at 3pm GMT on Wednesday 3rd December to discuss what the UK Budget means for the residential and commercial property outlook. (Register here.)
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