Allan Saunderson is managing editor of Property Finance Europe and a contributor to GlobeSt.com.

GENEVA-Global property stocks have, despite deteriorating fundamentals, had their biggest rally in 35 years since the trough in March but listed property is not attractive at current levels and the rally looks unsustainable, says Swiss bank Lombard Odier Darier Hentsch.

It is better to stay cautious, all the more so given the cautious outlook on equities and financials, and considering listed property's poor diversification value for now. Direct real estate on the other hand is attractively valued, and the drivers for a rebound are slowly being put into place.

"Some might argue that this valuation expansion simply reflects an anticipation of rising capital values, and that a pick-up in NAVs will soon absorb these premia," the bank said in a recent report.