📌 Europe & Hong Kong Drag on Global Real Estate 🏢📉

[madmax]

While Asia drives global property higher, Europe and Hong Kong remain weak, UBS warns.

Europe: REITs slipped in August as the ECB nears the end of its easing cycle. London offices underperformed, with rising vacancies in secondary markets like Stockholm. The sector faces a clear split between prime and secondary assets.

Hong Kong: Higher funding costs and weak July retail sales weigh on landlords, though luxury sales held up. UBS prefers developers over landlords, expecting housing to be near a bottom.

Despite challenges, UBS sees a modestly improving earnings outlook, with valuations globally still at a discount.

[Nahid Hossen]

Clear regional divide — Asia’s still lifting the tide, while Europe & HK landlords look stuck in the mud. Stock pickers’ market for sure.

[Rimon Khan]

UBS calling housing near a bottom in HK is bold. If true, developers could see a big rebound before landlords catch a bid.

[Abdul Khan]

Split between prime vs secondary offices in Europe is only widening. Vacancy risk is the real killer, not just rates.