Analysts Are Sounding Alarm Bell on European Real Estate Stocks
- JPMorgan, Citigroup latest to warn on debt-laden sector
- Recession fears weigh as rates jump spurs funding worries
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Everything is looking down for Europe’s worst-hit sector: Real estate.
Facing a double whammy of rising funding costs and a predicted economic slowdown, these highly-leveraged stocks are now seen as the most vulnerable corner of European stock markets. Analysts at JPMorgan Chase & Co. issued a fresh warning on real estate, saying a potential further rise in yields poses a “major headwind,” following Citigroup Inc.’s call that the sector could halve in value.