European Property Returns

A new research piece came out from Colliers giving an overview of the European property markets:

Source: CAPITAL FLOWS EMEA QUARTER 3 | 2018

Berlin, Frankfurt and Madrid are red hot markets across the three sectors, and London looks pretty decent in Logistics and Retail despite Brexit.

Source: CAPITAL FLOWS EMEA QUARTER 3 | 2018

Prime yields in the core countries have been basically flat in the last two years, while their spread to government bonds have shrunk.

Could this be the end of the fall in prime yields?

Unibail Falls on US Mall Concerns

Things have been pretty quiet on the European property market recently. So I thought I should look at it and this is what I saw.

This is a daily chart of Unibail-Rodamco-Westfield, which fell after reporting Q2 numbers and US mall concerns due to its Westfield acquisition:

Source: Bloomberg

Back to March lows, with a pretty ugly chart. This is a bit of a concern as Unibail is one of the biggest components of European benchmarks, which have fared pretty well recently.

 

Disclosure: We have no positions in URW.