Investing.com -- European listed real estate enters 2026 with valuations at their widest discount to the broader equity market in more than a decade, as easing refinancing pressure and stabilizing earnings shift investor focus toward sector selection and preferred names, according to Jefferies.
Jefferies’ top picks span the breadth of the European real estate market, highlighting companies with strong fundamentals, strategic positioning, and attractive valuations:
CTP is highlighted within logistics as valuations reset and the company was upgraded to "buy" following a derating, with Jefferies citing sector-leading earnings growth and a pan-European footprint.
Klépierre is identified as a preferred retail name, with Jefferies pointing to resilient consumer spending, destination shopping center exposure and discounted valuations across the retail sector.
Unibail-Rodamco-Westfield is also named among retail top picks, reflecting Jefferies’ view that large, high-quality shopping center platforms are positioned to benefit from improving sentiment and balance sheet repair.
LEG Immobilien is highlighted in residential, where Jefferies cited housing shortages, stable occupancy and discounted valuations as key factors supporting the sector into 2026.
TAG Immobilien is also named as a preferred residential stock, with Jefferies pointing to improved balance sheets and stable earnings profiles across listed housing companies.
Gecina is identified as Jefferies’ top office exposure, reflecting its focus on prime central business district assets at a time when secondary offices face elevated vacancy risk.
Safestore is highlighted in self-storage after being upgraded to "buy," with Jefferies citing early signs of operational recovery following a period of vacancy pressure and development spending.
Shurgard is also named as a preferred self-storage stock, as Jefferies said the company is entering a new growth phase supported by balance sheet strength and improving same-store performance.
Merlin Properties is identified as Jefferies’ preferred data center exposure, as the brokerage said supply-demand imbalances are driving rents to historically high levels in the European market.
Xior is highlighted within student housing, where Jefferies said demand fundamentals remain supportive and the company is positioned as a preferred name within alternative real estate segments.
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