Consistent with softer economic growth, annual rental growth for office and industrial property in CEE markets slowed in Q4. However, rental growth picked up for retail, bucking the downward trend seen elsewhere in Western Europe. (See Chart 1.) And property yields generally fell in the region, supporting capital values. Looking ahead, although rental growth is likely to lose some steam, with bond yields set to stay low, investor interest in CEE property is likely to hold up.
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