After an inflation crisis in 2022 that saw borrowing costs surge, we are once again witnessing tumultuous times. In contrast to the previous stock market correction, European real estate equities have outperformed European general equities. Rents are indeed not directly impacted by tariffs, but are there other reasons why listed property should hold up well from a fundamental point of view? Here are the nine main reasons why we believe so.

Markets have come under renewed pressure following President Trump’s announcement of a sweeping “reciprocal tariffs” plan. The proposed measures were broader and steeper than anticipated, with a base 10% tariff and additional levies on select countries and goods. This announcement reinforces the recent stock market weakness. The question now is how markets will digest the real-world impact of these tariffs.

In a substantial reversal of economic doctrine, Europe's austerity era seems to have come to an end with Germany’s decisive electoral shift and the unveiling of a staggering trillion-euro stimulus package. After an enduring industrial slump, Germany’s recent fiscal manoeuvre marks a clean break with decades of austerity policies.