Interest rate environment boosts the outlook for returns
Despite a weakening economic outlook in the eurozone, our all property total return forecast for the region has been upgraded from six months ago. This has been largely driven by the dovish shift in monetary policy from the main central banks which has significantly downgraded the expectations for interest rate rises over our forecast period. This means we are no longer factoring in outward shifts in property yields towards the end of our forecast period as a result of the shrinking risk premium.
For more insights, read the latest Eurozone Real Estate Outlook – Edition 2H19.