By Nina Kienle
Shares in German real-estate companies fell on Thursday on growing concerns of inflation risks and yields on government bonds rising, driven by the conflict in the Middle East.
In European midmorning trade, Vonovia shares plunged 9.0%, while both LEG Immobilien and TAG Immobilien shares fell 6.4% and 5.9%, respectively.
"Global events that are seeing inflation risks--and therefore yields--rise, [is] a combination that typically sees German residential names struggle", J.P. Morgan analysts said in a note to clients.
The Middle East conflict is driving up energy prices and raising concerns about a potential resurgence in inflation. Eurozone bond yields are climbing, as oil prices turn higher. As a result, money markets are pricing in the potential for rate rises from the European Central Bank, LSEG data show.
Meanwhile, French peers Unibail-Rodamco-Westfield and Klepierre shares fell 1.5% and 0.7%, respectively. In Switzerland, Swiss Prime Site shares fell 0.6% and PSP Swiss Property was down 0.1%.
Write to Nina Kienle at nina.kienle@wsj.com
(END) Dow Jones Newswires
March 19, 2026 06:24 ET (10:24 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.

