The real estate markets in Germany and Italy saw capital-value declines in 2010, according to Investment Property Databank (IPD), but both look to be recovering.
Despite a 0.9% capital depreciation, total returns for German real estate were positive at 4.2% last year.
Meanwhile, Italian commercial property values finally stopped falling over the second half of last year, registering zero capital growth, according to the IPD Italy Bi-Annual Property index.
As a result, the first indication of the Italian market's full-year capital growth is still negative, at -0.3% – making it one of only three European commercial real estate markets that have so far registered annual capital depreciation, behind Ireland at -3.3% and Germany at -0.9%.
Source: IPE Real EstateGoogle+