In contrast to the rest of Europe, CEE yields not only rose, but increased more sharply in Q1 than the previous quarter. Strong rental growth cushioned the blow to all-property capital values, but that did not prevent a partial reversal of Q4’s rise. Industrial performance mixed buoyant rental growth with the sharpest yield rises on record, other sectors were more consistent. Moving forward, it is still too early to early to call the peak in property yields. And sustained economic weakness means that rents are likely to slow further this year. As a result, we expect further declines in capital values.
We are resending this Emerging Europe Commercial Property Chartbook due to an error with the previous email.
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