Fixed currency boosts property investment in Euro zone, shields from volatility
The article looks at how changes in exchange rates affect property investments in European cities. They studied office rental growth rates in 22 cities from 1985 to 1996. The findings show that fixing the exchange rate in the Euro zone has different impacts on property investors in southern and northern countries. Southern countries are now protected from short-term risks, while northern countries see minimal effects. Overall, currency movements have historically led to lower returns and higher volatility in property investments.