Consistent with the slowdown in the region’s economies, the upturn in commercial property rents in Scandinavia seems to have stalled. Given that, we think that yields will begin to rise before long, and in turn property prices will soften. Elsewhere, the recent rise in all-property yields in Emerging Europe indicates that investors remain cautious about the region. And this is likely to remain the case if occupier demand weakens and rents fall.
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