Europe Commercial Property Update More pain ahead for Italian industrial The Italian industrial market saw its sharpest fall in capital values on record last year, owing to a surge in yields in Q4. But with valuations still stretched and investor demand weakening, we think... 9th March 2023 · 3 mins read
Europe Commercial Property Update Property returns to revive over the longer term The current economic downturn will mean that short-to-medium term property performance is under-par. But over a longer horizon, we expect real estate returns to reassert their traditional position... 2nd March 2023 · 3 mins read
Europe Commercial Property Update A tough year ahead for Prague retail Prague retail saw an unexpected rental uplift at the end of 2022, ending three years of decline. But we think that will be a false dawn and expect that a subdued consumer outlook will combine with... 13th February 2023 · 3 mins read
Europe Commercial Property Update Dublin office slowdown underway Slowing jobs growth, a tech-driven slump in net absorption and a strong supply pipeline underline our view that Dublin prime office rents will fall slightly this year. This would mark a sharp... 9th February 2023 · 3 mins read
Europe Commercial Property Update Revised GDP profile adds to the downside A stronger than expected end to last year only postpones the euro-zone recession in our view. That will weigh slightly more heavily on property performance this year, as all-property rents may now... 7th February 2023 · 3 mins read
Europe Commercial Property Update Chinese tourist rebound no silver bullet for prime retail The reversal of China’s zero-COVID policy means Chinese tourists could return to European high streets sooner than expected. While this should help support occupier demand, it seems unlikely it will... 2nd February 2023 · 3 mins read
Europe Commercial Property Update German office values fall faster than after the GFC Early data indicate that German offices saw the steepest increases in yields on record in late 2022. And we think that with policy rates set to go higher, it is too early to rule out further rises in... 31st January 2023 · 3 mins read
Europe Commercial Property Update Hawkish ECB will weigh on euro-zone investment Euro-zone investment contracted sharply in Q4 2022 and we think further interest rate rises will prolong this weakness throughout much of this year. But we expect a recovery in transactions towards... 27th January 2023 · 3 mins read
Europe Commercial Property Update Retail rent outlook weak despite recent better news Since the end of last year, developments have been more positive in the retail sector. However, we still think 2023 will be a difficult year. The weak outlook for consumer spending and more spending... 25th January 2023 · 3 mins read
Europe Commercial Property Update Are we nearing a trough for Scandinavian investment? Near term economic headwinds suggest the slowdown in investment activity in Scandinavia will continue in 2023. However, with policy rates near a peak, and improving economic activity and falling bond... 23rd January 2023 · 3 mins read
Europe Commercial Property Update Office downturn underway Office markets started to lose momentum at the end of last year and the expected weakness in employment this year suggests the slowdown will continue. That said, we think prime rents will avoid falls... 17th January 2023 · 3 mins read
Europe Commercial Property Update Dutch offices unlikely to fall over EPC cliff-edge The recent commencement of stricter office EPC legislation in the Netherlands has raised concerns that Dutch office valuations may be on the edge of a regulatory precipice, given the large proportion... 13th January 2023 · 3 mins read
Europe Commercial Property Update Higher interest costs pose downside risks to values Real estate equity prices pointed to around a 10% fall in euro-zone all-property capital values in 2022 and we expect a similar size fall this year. But while the latest REIT data show landlords were... 11th January 2023 · 3 mins read
Climate Economics Update The key battlegrounds for cutting property emissions A large part of the real estate sector’s carbon footprint is related to electricity production and so will shrink over time as the use of renewables continues to expand. The biggest challenges to... 9th January 2023 · 6 mins read
Europe Commercial Property Update The key developments to look out for in 2023 The property repricing in response to higher interest rates has not yet run its course. Coupled with a recession-driven slowdown in rent growth, this means 2023 is shaping up to be another bleak year... 6th January 2023 · 3 mins read
Europe Commercial Property Update Faster adjustment in prime values to rising rates so far The latest MSCI data show that prime property values underperformed the wider market last year. But with the rest of the market more vulnerable to the economic recession and as MSCI values catch up... 5th January 2023 · 3 mins read
