Commercial property values in Europe
continued their ascent in the first three months of 2011, albeit at a slower pace than previously recorded. CB Richard Ellis (CBRE) figures show that there was a 0.4 per cent increase compared to the same period of 2010.
However, while prices were up year-on-year, the growth was down on the 1.2 per cent increase recorded in the final quarter of last year.
The consultant notes that the slower rate is consistent with recent changes in prime yields
in the first three months of the year where falls of ten basis points or less were recorded across the office, retail and industrial sectors, the report points out.
Overall, CBRE believes that the market is in good health, with stability the overriding factor.
"Value growth remains positive but gradual, reflecting an absence of strong movements in either rents or yields this quarter," said Richard Holberton, director of EMEA Research, at CBRE.
Meanwhile, the report concludes that investors are gradually beginning to shift along the risk spectrum, with a reported upturn in demand in riskier markets such as Spain and core Central East Europe.
- Tuesday 14 June 2011