EUROPE - European property markets look set to deliver low returns in 2008 as a result of asset re-pricing due to the credit crunch.
In the UK, for example, Aberdeen said capital values declined by 10% in the second half of 2007, with further declines likely this year. As a result, yields are expected to move higher.
Alessandro Bronda, head of investment strategy, Aberdeen Property Investors, said: "We believe future performance is going to be increasingly dependent upon the underlying fundamentals of the market rather than yield compression."
However, on a country-by-country basis, the picture is not homogeneous. While Western European GDP is expected to grow 1.9% this year - 0.8% lower than 2007 - Eastern Europe is predicted to grow 6.0%.
Within this, individual markets likely to attract investment. Property investment company Estavis said according to a survey, 68% of institutional investors across Europe and the US would like to increase exposure to Germany.
About a fifth of investors expect a return of at least 7.5% on opportunistic properties, two-thirds expect a return of 5.5%-7.5% for core-plus investments and over 70% expect a return of 6.0%-7.5% for value-add properties.
PwC, KPMG, EY and Deloitte must break up their consultancy and audit businesses into distinct firms to provide greater focus on the "most challenging and objective audits", the competition watchdog has said.
The Department for Work and Pensions (DWP) has released its first batch of guidance setting out how the guaranteed minimum pension (GMP) conversion legislation may be used to resolve unequal payments.
This week's top stories include the government spending £800,000 on a Gogglebox advert and MPs writing to The Pensions Regulator about its engagement with the Railways Pension Scheme.