Capital values on track for their strongest annual gain since the crisis

Compared to our last Analyst, we have moved up our rental growth forecasts for offices, reflecting limited development pipelines and falling vacancy rates. Rental growth across all sectors, combined with our expectations for further yield compression, means that euro-zone commercial property capital values look set to record their strongest annual gain since the crisis. By sector, offices should see the strongest capital gains due to greater scope for rental growth. By country, Ireland and Spain should outperform.