Prime yields in real estate markets across Europe are showing signs of stabilisation, says CB Richard Ellis.
Data on the thrid quarter of 2009, released at today's Expo Real trade fair in Munich, show the broker's EU-15 all-property average prime yield index remaining stable at 6.13% during the period.
CBRE said this reflected a strengthening of investor sentiment towards core prime assets, particularly in Paris and the City of London markets.
Speaking at the event, Nick Axford, head of EMEA research and consulting for CB Richard Ellis, said: 'There is still some variation in the extent to which individual markets have repriced, but in general prime yields are showing clearer signs of leveling off.
'Indeed, in some highly liquid markets that have seen substantial repricing - notably London and Paris - the direction of yield movement is now downward.
CBRE's index series had risen by 130 basis points between mid-2007 and the first quarter of this year, since when it has remained level.
But since March prime Paris yields have improved by 50 basis points and small upward adjustments are still evident in some markets including the main Italian cities, Axford said.
The research showed that elsewhere prime yields are broadly unchanged from their mid-year levels.
The EU-15 industrial yield index remained static in the third quarter, reflecting unchanged figures in the bulk of the main markets, while the retail yield index rose marginally but is still within 25bps of its end-2008 level.