Rising interest rates have pushed down commercial property equities, which implies capital values will come under further downward pressure. That said, the large correction in equities seen in 2022 meant annual growth has now levelled out. That suggests the -18.8% y/y fall in all-property capital values in Q2 marks the low point for growth rates and supports our view that capital values will end the year down by around 5% y/y.
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