The Netherlands and Spain picked to be top performers
The Netherlands and Spain have been picked by UBS Asset Management as the two markets set to deliver the strongest performances in Europe across all properties over the next three years.
The manager believes that both markets are expected to benefit from strong capital growth and some further front-loaded yield compression. Market conditions in both markets continue to strengthen, resulting in reasonably robust rental growth. It forecasts the Netherlands to almost deliver a 10 percent total return through to the end of 2020.
Overall, UBS anticipates a total return in Europe for all property of 6.7 percent, a 90 basis point improvement on its expectations at the start of 2018. The industrial sector is still expected to be the strongest performer, with a total return of 9.6 percent, followed by the office sector at 6 percent and retail at 5.7 percent.
In its latest Eurozone Real Estate Outlook research note, the manager outlines how it sees industrial per