Morgan Stanley maintains a constructive outlook on European property, citing strong fundamentals, light investor positioning, and attractive valuations.
Since 2022 bond‑yield rise, logistics and hotel operators outperformed capital‑intensive landlords, while retail and care‑home sectors showed mixed post‑pandemic effects.
In 2026 landlords outperformed operators in retail and care homes or matched them in logistics and hotels, with Merlin leading data‑center landlords.
Risks highlighted include AI‑driven office disruption, Middle‑East geopolitical uncertainty, and growing concerns over private‑credit market conditions.