Continental European real estate currently offers some of the best value in the developed world, supported by an increasingly positive economic outlook. Occupier demand is on the rise, and we expect that rental growth will accelerate over the short to medium term, which should deliver a growing income stream for investors.
Top three trends in continental Europe's property market:
- Political risks are receding, while Eurozone GDP forecasts have been upgraded
- Coupled with the weight of capital driving down yields, we expect continued strong return performance from Europe
- Following in the steps of the UK and US, e-commerce drivers expected to boost logistics rental growth
Read the latest papers from M&G Real Estate’s research team to find out more about the sectors and regions which currently offer the best investment opportunities:
European real estate market outlook
By investing with M&G Real Estate, you can benefit from our on-the-ground presence across continental Europe, with our investment and asset managers using local networks and knowledge to source the best deals (on and off the market) and actively manage the investments to maximise returns.
Investment Case
Continental Europe offers investors strong return prospects in a global real estate context and value can still be uncovered in many parts of the market. The case for investing in continental Europe is backed by:
- Economic pick up and improving market fundamentals
- Attractive relative pricing creating a healthy risk premium over bonds
- Some of the highest total return prospects globally
- Market liquidity and transparency offering safe haven benefits
- Diversification and risk-adjusted performance
Read about the fundamentals that back the investment case for Continental Europe.
The value of investments will fluctuate, which will cause prices to fall as well as rise and investors may not get back the original amount they invested.