Where Do European Property Values Go From Here?

CRE Returns Outpace Alternative Investment Options Total Returns, H1 2012 to H1 2022

208%

Over the past 10 years, property—measured by MSCI delivered returns of 134%, broadly outperforming the REIT market which delivered returns of 88%. Over the same period property returns significantly outpaced both corporate and government debt investments, while marginally outperforming the STOXX 50. Property has also proved to be an effective hedge against inflation. In fact, on average, all-property returns across Europe have outplaced inflation in 19 out of 22 years by a margin of 7.6%.

140%

134%

98%

88%

38%

27%

Value-Added Real Estate¹

Core Real Estate²

MSCI Europe All-property

STOXX 50 FTSE EPRA NAREIT Europe

BBB Corporate Bonds³

10Yr Gov't Bonds⁴

Source: MSCI, Preqin, Bloomberg, Cushman & Wakefield Research ¹ Preqin Value-added includes investment in lower quality buildings that often require redevelopment/repositioning in both primary and secondary markets, in the main property types. ² Preqin Europe Focused RE is a subset of the PrEQIn Private Capital Quarterly Index that captures the return earned by investors in their private capital portfolios in Europe.

³ Bloomberg Euro Government 10 Year Term Total Return ⁴ IBOXX Euro Corporates 7-10 BBB Total Return Index

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