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28 May 2012

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European property returns to stay negative in 2009 - Aberdeen

European property returns will remain negative across Europe this year, with rental falls likely as the economic downturn gathers pace, Aberdeen Property Investors said. Capital values will continue to decline as investors re-assess the risk premium they attach to property, not helped by the reduced availability of bank finance. Retail property will outperform office and industrial in the short term as it benefits from controlled new supply and more resilient occupier demand. Within retail, high street shops in the main cities and large shopping centres attracting high footfall are most preferred.

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