UBS-AM REPM: euro zone real estate outlook in H2 2019

The outlook for the global and euro zone economy has taken a markedly downward shift in recent months, according to UBS-AM Real Estate & Private Markets’ Eurozone Real Estate Outlook – Edition 2H19. With investors rushing for safety, short- and long-term U.S. Treasury yields have inverted, adding further concern that we are heading for a recession in a major economy. Now there are various reasons why an inverted yield curve may not be a forward indicator of a recession on this occasion. However, the factors which are contributing to the concerns of the pace of economic growth in the euro zone are undoubtedly significant for real estate markets. GDP grew by 0.7 percent in first half 2019, but slowed to just 0.2 percent quarter-on-quarter in second quarter 2019. Survey data suggests a pick-up in the third quar