REAL ESTATE VALUES RISE AS PRIME YIELDS SHARPEN
- CEE and the Netherlands reverse decline -
London, 20 August 2015 – Commercial property values across all asset classes in Europe have edged up 1.9% in Q2 2015, with yield shift being the main driver of this, according to CBRE’s latest European Valuation Monitor.
Over the quarter, France and the UK were the best performing countries at the All Property level, rising by 3.0% and 2.4% respectively. Values in Southern Europe also picked up smartly (+1.6%), driven largely by the Industrial sector (+2.4%).
Following several quarters of decline, values in CEE reversed their slide as All Property values rose by 0.8%. The Netherlands also saw values increase at the aggregate level by 0.8%; the office sector saw values decline, but there was a positive turnaround for the Industrial and Retail segments. In CEE, the buoyant Industrial sector contributed to values rising 3.0% on the previous quarter.
Matthew Edmonds, Senior Analyst, EMEA Valuation and Advisory, CBRE commented:
“Once again, yield compression has been the driver of value growth across all asset classes In Europe. The prime end of the market is still the most in demand, but as investors become less risk-averse, they are looking for opportunities in secondary and tertiary markets.
“While a significant weight of money continues to target the real estate sector, we envisage modest growth to continue. As rental growth becomes more prevalent will we start to see more buoyant activity across all sectors in Europe.”