Research looking at the impact of quantitative easing (QE) on European property by M&G Real Estate, predicts strong investment into European real estate as the European Central Bank (ECB) injects €1.1trn into the Eurozone economy.

With 10-year government bonds reaching record lows, QE has already substantially weakened the euro against both the dollar and sterling. The Euro has fallen to a 12-year trough versus the dollar and a 7-year low against sterling. The boost from a weaker Euro and ongoing positive structural changes to European export industries is particularly good news for rental growth in e-commerce related real estate such as logistics and distribution hubs, particularly in economies such as Germany.

M&G Real Estate has also compared the impact of earlier QE on the commercial real estate markets in the US, the UK and Japan. Six years after monetary easing programmes were first introduced, both the UK and US have benefitted from increased output, employment growth and private consumption as well as buoyed financial data. There are strong grounds to suggest this will be mirrored in Continental Europe given the latest stimulus plans mark by far the largest injection in the region – equal to almost three times the total purchases made between 2009 and 2014.