14.07.10
The largest office yield reduction during Q2 2010 was in Moscow (down 100 basis points to 11%), according to CB Richard Ellis’ latest EMEA Rents and Yields Indices. The Hague has taken the number two position (down by 35 basis points to 5.75%). The report shows that prime rents and yields across key European markets remained broadly stable in the second quarter (Q2) of 2010.
Evidence of rental improvement was most apparent in the office sector, where prime rents rose for the second consecutive quarter and were 1.7% higher than at the end of 2009. While prime rents remained stable in most office markets, the largest increases occurred in Oslo, where rents increased by 6.6% over the quarter to €402 per sq m per annum and the City of London where rents increased by 6.3% to €657 per sq m per annum. The largest falls were in Dubai (down 7.5% to €886 per sq m per annum) and Lyon (down 6.5% to €230 per sq m per annum). Rents in the retail and industrial sectors edged down very slightly. Across all three property sectors, prime rents for the region as a whole were roughly on par with their level of a year ago.
Prime yields continued to see modest downward pressure in Q2, and as a result, ended the period 30-50 basis points lower than a year ago. The largest increases were in Thessaloniki where office yields increased by 50 basis points to 8.00%, and Athens where there was an increase of 25 basis points to 6.75%. In the retail and industrial sectors, the yield change was less than 10 basis points in the quarter.