Global Rent and Capital Value Indices MarketView Q1 2016
Capital value growth loses momentum, rent growth holds firm
- The global economy emerged from a turbulent start to the year to record a period of steady growth in Q1 2016, thanks mainly to stronger growth in the Eurozone. Oxford Economics estimates that the global economy will expand by 2.2% this year.
- Capital values and rents recorded further growth in Q1 2016. While capital value growth continued to outpace rent growth in the office, industrial and retail sectors, the period saw a slowdown in capital value growth across the three sectors.
- The slower growth reflected the decline in investment volume recorded during Q1 2016, but there is still a considerable weight of capital in the market ready to be deployed, so the weakness is unlikely to persist for long.