UBS | We remain constructive on the European real estate sector. As a bond proxy with growth , real estate benefits from current central bank stimulus, while it can also gain through rental growth in an inflationary environment, should the stimulus prove successful. For Spain, we upgrade Hispania to Buy and downgrade Merlin to Neutral.
European real estate
Amid the generally gloomy economic statistics, however, and much to many commentators’ surprise, there is a whiff of optimism in the air in Europe that could prop up the European real estate markets.