This has been largely driven by the dovish shift in monetary policy from the main central banks.
However, it’s not all positive news.
We have taken steps to notably downgrade our retail forecasts as we expect the structural changes to accelerate re-valuations across Europe. This is partly based on our experience of the UK/US markets over the past few years. Our five year retail forecast now stands at 2.9%, down from 3.7% six months ago.
In industrials / logistics, we have once again upgraded our forecasts. The sector continued to benefit from yield compression and rental growth.
We are expecting continued capital and income growth over the next three years, with the top picks being the Netherlands and France
For more insights, read the latest Eurozone Real Estate Outlook – Edition 2H19.