Despite a sharp rise in property yields, renewed increases in alternative asset yields led to a further deterioration in European property valuations in Q3. All markets were overvalued except for Istanbul, where sharp falls in Turkish government bond yields pushed scores into undervalued territory. However, with alternative asset yields falling so far in Q4 and expected to decline significantly further in 2023, valuations should soon begin to improve given property yields are also forecast to continue rising.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services