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

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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.