European real estate faces 'split path' in 2026; Jefferies ups CTP, cuts Covivio

Klepierre SA

08/01/2026 09:39

** Jefferies enters the new year with "cautious optimism" for European real estate, noting valuations are cheaper than the broader market for the first time since the 2008 financial crisis

** The brokerage anticipates a sector-wide rebound with total returns potentially exceeding 20%, driven by stabilising interest rates and better debt market access

** "Retail and residential look well-positioned to outperform," it says, while urging a selective approach to logistics and warning that office assets remain under pressure

** Jefferies upgrades logistics developer CTP CTPNV.AS and self-storage facilities operator Shurgard SHUR.BR to "buy" from "hold", naming them among its top picks alongside Klépierre LOIM.PA in retail and Gecina GFCP.PA in offices

** While "logistics continues to benefit from structural tailwinds", self-storage is "on the recovery path following a few years of vacancy creep", it says

** Jefferies cuts Covivio CVO.PA and Carmila CARM.PA to "hold" from "buy" on valuation grounds, and says it expects mergers and acquisitions to remain a key sector theme

(Reporting by Jerome Terroy)

((jerome.terroy@thomsonreuters.com))