Where next for Eurozone property yields?

Europe is likely to emerge from its current correction with interest rates significantly higher and risk spreads much narrower. At the same time, the pandemic has raised doubts about rental growth in some sectors, while boosting others. A repeat of the steady cross-sector compression of the pre-pandemic period seems very unlikely, so where will yields go next?

Andrew Burrell joined Capital Economics in 2018 as the Chief Property Economist. Prior to this he was the EMEA Head of Economics and Forecasting at JLL, working closely with European property investors. A decade in real estate was preceded by over 15 years as a professional economist at Experian, the Bank of England, RBS and the London Business School. He is an active member of both SPR and IPF.