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Investor appetite for Emerging Europe to stay soft

The euro-zone crisis already appears to be having a detrimental impact on economic growth across the rest of Europe and over the next two years, most non-euro-zone economies will experience a period of sub-trend growth, or in some cases a mild recession.  Accordingly, the short-run outlook for commercial property occupier markets and capital values is poor. That said, income returns in most non-euro-zone markets will be strong enough to more than offset any falls in capital values. Thus, unlike in the euro-zone, average total returns for non-euro-zone markets over the next two years will be low, but positive.  

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