European Commercial Property

Euro-zone Commercial Property Outlook

27 February, 2017

Rental growth to start driving relative market performance

We see euro-zone GDP growth slowing this year due to the drag from higher inflation and political uncertainty. With no monetary policy tightening on the horizon, further falls in prime yields will continue to drive capital values higher over the next two years. However, the ability of a market to generate rental growth will start to play an increasingly important role in differentiating between the best and worst performing cities. Although we think that there is still scope for prime property yields

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