Currency depreciation adds to emerging European rental downturn

Headline rental values in emerging European commercial property markets have been under downward pressure from both weak occupier demand amid the global economic downturn, and from currency depreciation. Despite the worst of the latter appearing to be over, the region is gripped in recession and local currency rental values are still higher now than a year ago in some markets. As a result, headline rents in all emerging markets are likely to remain under downward pressure from both of these forces for some time.