Prime yield compression is emerging across some continental European markets, mirroring hardening yields in the UK market over recent quarters.
According to DTZ, in the office sector, the biggest shift was in Bucharest, where yields moved in by 100bps to 9%.
In France, Paris La Defense fell 25bps to 6%with two regional French markets also registering falls.
Elsewhere in Europe, yields in Luxembourg fell 20bps (to 6.2%) and in Berlin, prime office yields moved in by 15bps (to 5.55%). Only Dublin and Milan registered increases of 25bps to 7.5% and 6.25% respectively.
In retail, Hamburg registered a 30bps inward movement to 5.25% and Madrid a 25bps inward shift to 6.25%, while in the industrial sector, Moscow saw a 100bps inward shift to 14%, Prague registered a 50bps fall to 8.5%, and in the Netherlands, Utrecht saw a 30bps inward shift to 7.75%.
Magali Marton, head of Continental Europe and Middle East Research, said: “The recovery is most evident in the office sector, with four European markets registering a fall over the fourth quarter in contrast to just four markets in the retail and industrial sectors.”
