Aberdeen warns rising bond yields put real estate valuations under pressure

• Aberdeen Investments shifted to a neutral real estate outlook in its Q4 2026 Houseview as higher bond yields pressure valuations.
• European property yield spreads over German Bunds narrowed to 160 basis points from around 220 in the three months to September 30, 2026.
• Annualized real estate returns are forecast at 6.6% in Europe and 5.8% in the UK over the next three years.
• European real estate debt costs exceed 5%, surpassing their 2023 peak, though financing remains readily available for high-quality assets.
• Retail and selected regional industrial markets offer greater protection; tightly priced offices, residential properties and London industrial assets face further repricing.

Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. Aberdeen Group plc published the original content used to generate this news brief on October 22, 2026, and is solely responsible for the information contained therein.