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Euro-zone property cycle a step closer to turning

Prime euro-zone property yields still have scope to fall over the next 18 months. However, with a stronger outlook for the euro-zone economy, we have increased our forecasts for government bond yields. As result, we now expect property yields to find a floor next year and have pencilled in larger rises in the final years of the forecast period. This means an earlier and sharper fall in capital values is on the horizon.

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