European real estate stocks have performed well this Thursday, after experiencing a troubling month that impacted their performance resulted by recent turmoil in the banking sector.
Despite promising numbers, investors remain cautious, with property prices likely to fall, and credit conditions getting tighter gives companies a hard time with refinancing debt.
“At these levels, a bit of bad news is in the prices. Nevertheless, I believe prospects for real estate remain ugly,” said Giuseppe Sersale, fund manager at Anthilia in Milan.
Swedish Castellum, SBB, Wallenstam, Aroundtown and Vonovia in Germany and Dutch Unibail real estate stock increased by four percent. The STOXX Europe Real Estate index went up by 2.8 percent and STOXX 600 equity benchmark index went up by 0.9 percent.
Citibank has been warning against a potential decline in European real estate stocks, exceeding 50 percent.
