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Savills forecasts European prime office and logistics yields to reach a record low this year
Research - MAY 25, 2021

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Savills forecasts European prime office and logistics yields to reach a record low this year

by Andrea Zander

Savills forecasts European prime CBD office yields to move in by another –10 basis points and prime logistics yields by –25 basis points this year, hitting a further record low.

On average prime European CBD office yields moved in slightly in first quarter 2021 by 4  basis points year-over-year to 3.58 percent. On an annual basis, prime office yields have hardened in Oslo by –40 basis points; London West End, Brussels and Milan by –30 basis points; and Paris and Hamburg by –20 basis points. Paris CBD yields remained stable at 2.75 percent during the first quarter of the year, while Berlin hardened by 10 basis points to 2.6 percent as German investors continue to seek super-core assets, says Savills. London still remains at a discount to continental European core markets, as West End yields stand at 3.5 percent and City yields at 4 percent.

The strongest yield compression has been observed in the logistics sector, reflecting the impact of large amounts of cap

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