Aberdeen sees improved performance outlook for Benelux

The performance outlook for the Benelux property markets is improving, according to the latest report from Aberdeen Property Investors. Occupier markets may have weakened, but market re-pricing has reduced the scope for further outward yield shifts and rental growth prospects in the medium to longer term are improving, according to Gert-Jan Kapiteyn, Director of Research and Strategy for the Benelux. 'There are now good opportunities for contra-cyclical investors to buy into attractively priced prime property assets - a situation we haven't seen for a long time.'

The five-year rolling total return forecasts range between 5% and 7% for prime retail and between 4% and 5% for prime office and industrial properties. Return forecasts are highest for prime retail and office markets in Luxembourg. Belgian retail also looks attractively priced, the report concluded.

The Benelux countries have seen high levels of contraction during the first part of 2009, partly due to the open, export led nature of their economies, the report said. However, the worst of the recession seems to be over. 'Economic sentiment has improved markedly over the course of the last few months in all three countries. The sharp recovery in the stock markets is also an indication of better times ahead.'