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Scandinavia & Switzerland: The property cycle turns

The Nordic and Swiss economies performed relatively well in Q2, while prime rents showed further rises in Scandinavian office and industrial markets. However, the economic outlook has darkened, which will weigh on rental growth further ahead. And a negative shift in investor sentiment and rising bond yields have already started to push up property yields. As such, the slowdown in annual capital value growth that got underway in Q2 is likely to intensify.

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