European logistics sector continues to outperform other property sectors

With global trade tensions weighing on Europe’s near-team growth prospects, investor risk aversion across all asset classes has increased, according to M&G Real Estate’s Europe Market Outlook.

The logistics sector has outperformed all other sectors for the sixth consecutive year, a trend expected to continue in 2019. Investment performance has been fueled by the sector’s underlying strengths, the evolution of consumer behavior and heightened investor interest placing increased pressure on pricing. While market values have surprised on the upside, with yields having compressed 70 basis points over the past two years, arguably pricing has been playing catch with the intrinsic value of modern logistics.

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