VALUES RISE ACROSS ALL ASSET CLASSES AT A FASTER PACE THAN SEEN IN THE PREVIOUS QUARTER. THE ALL PROPERTY INDEX REBOUNDED TO 1.6% ON THE QUARTER, DRIVEN BY VALUE GROWTH IN THE NORDICS, GERMANY, SOUTHERN EUROPE AND FRANCE IN PARTICULAR.

• The Industrial and Office sectors were the leading performers, with value growth of 2.5% and 1.8% respectively on Q2. Retail grew at a higher rate of 0.8%.

• Grouping equivalent yields into quartiles, we see that there was yield compression across all quartiles, particularly those in quartile 2. This serves as evidence that the European market is continuing to see yield compression across most asset types. This is likely to be a sign of the limited availability of top quality assets along with the historically low interest rates.

• Over the quarter, the Nordics and Germany were the best performing at the All Property level, both rising by 2.2%. This was mainly driven by the Nordic Office sector and the German Industrial and Retail sectors.

• All Property values rose by 1.4% in the UK on the quarter which followed a similar trend to the preceding two quarters of 1.2% in Q2 and 1.3% in Q1.

Simon Threlfall

Simon Threlfall

Senior Director, Valuation and Advisory Services

+44 (0) 20 7182 2530
simon.threlfall@cbre.com

Richard Holberton

Richard Holberton

Senior Director, EMEA Research

+44 20 7182 3348
richard.holberton@cbre.com

Chris Lyde

Chris Lyde

Analyst, Valuation & Advisory Services

+44 20 7182 2927
chris.lyde@cbre.com