Printer Friendly

MIPIM: Investors return to UK market prompted by better value.

Jones Lang LaSalle's business leaders yesterday outlined expectations for the UK, Germany and Russia at its MIPIM 'Key Market predictions for Europe' conference.

The property firm forecast UK investment turnover to fall 30 to 40 per cent in 2008, and sees real opportunity in the UK market. Germany is predicted to have strongest rental growth in Western Europe, while Russia will maintain dynamic growth underpinned by more than just oil.

Nigel Roberts, chairman of EMEA research at Jones Lang LaSalle, opened by looking at Europe's real estate markets over the year.

"This time a year ago the property party was in full swing after five years of fantastic performance.

The market was awash with capital and we estimated five euros chasing every one of real estate product. Today's post credit crunch environment is testing investor confidence and price levels."

Mr Roberts outlined the factors in play. n the credit markets will not return to pre crunch 'normality' n debt will remain expensive and restricted in 2008 weakness in financial markets will translate to all sectors and impact occupational demand.

He expects capital values to fall at least another 10 per cent.

On the plus side Mr Roberts highlighted positives, pointing out economic growth continues and supports occupier markets and some rental growth; corporate Europe is cautious but in good health, interest rates are historically low and there is little evidence of oversupply.

"We expect good opportunities to emerge at new lower price levels for investors with good equity backing as the year unfolds as investors start to price risk to reflect the new market reality. There is still plenty of capital and the depth and breadth the European market offers investors has not disappeared: confidence is the key."

Julian Stocks, head of capital markets in England at Jones Lang LaSalle, picked out several key predictions: "We expect UK investment turnover to be down year on year 30 to 40 per cent at the end of 2008. Activity remains at lower levels.

"That said we are already aware of an increased interest in the UK from investors, both domestic and overseas, as they recognise value returning.

"We think there will be an overcorrection in the London office sector.
COPYRIGHT 2008 Birmingham Post & Mail Ltd
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2008 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:The Birmingham Post (England)
Date:Mar 13, 2008
Previous Article:MIPIM: Hampton by Hilton hotel commitment.
Next Article:MIPIM: Search is on for several designers of new face of Stoke.

Related Articles
City sets out stall to woo property investors; 6,000 to attend Cannes festival IN ASSOCIATION WITH LIVERPOOL'S INVESTMENT SPECIALISTS Rensburg...
Midlands is ready to shine as networking event arrives; MIPIM CONFERENCE Mark Swallow, head of Knight Frank's Birmingham office, takes a look at...
Creative firms feeling the benefit of MIPIM links; In association with Merseyside acme DEVELOPING CREATIVE INDUSTRIES Cannes trip is worthwhile for...
What Cannes the property set expect at MIPIM? With financial turmoil gripping the property world, the head of Knight Frank's Birmingham office, Mark...
City ready to pitch to world; Scaled-down MIPIM 'more vital than ever'.
Log on to
Durrat Marina showcases projects at Cannes summit.
Durrat Marina showcases projects at Cannes.
Gulf dwarfs 'European realty growth'.

Terms of use | Copyright © 2018 Farlex, Inc. | Feedback | For webmasters