The prospects for European prime property are still positive for the remainder of 2017 and 2018. However, we think that the gradual creep upwards of government bond yields will eventually cause a re-think by investors, most likely in late 2018 or early 2019. This means that although all markets bar Istanbul will perform well in the next two years, the outlook for capital growth thereafter is far less positive, with capital values falling in 2019-21 in Western European markets, as well as the Czech Republic and Poland.
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