European real estate stocks continue slide as fewer rate cuts seen ahead

Sagax AB

06/03/2025 09:25

** Shares in European rate-sensitive real estate companies continue falling on Thursday as investors factor in fewer rate cuts ahead

** The STOXX real estate sub-index .SX86P is down around 2%, falling for a fifth day and capping gains on the benchmark, while euro zone bond yields continue to rise ahead of the ECB's policy meeting

** Investors have scaled back their bets on future ECB rate cuts as they expect fiscal spending in Germany to boost growth and inflation

** Shares in Vonovia VNAn.DE, TAG Immobilien TEGG.DE, LEG Immobilien LEGn.DE down between 3% and 4%

** In Sweden, a hot inflation print on Thursday likely put an end to near-term prospects of further rate cuts by the central bank

** Shares in Balder BALDb.ST fall 3%, Sagax SAGAa.ST 3%, Wihlborgs WIHL.ST 2.7%

** "Interest rates have not fallen as much and as quickly as was expected during the autumn," says Carlsquare analyst Bertil Nilsson on the Swedish stocks

 (Reporting by Greta Rosen Fondahn)

 ((Greta.RosenFondahn@thomsonreuters.com))