Investors should take shelter in property if they wish to weather the economic downturn, according to research released by LaSalle Investment Management.
LaSalle’s Investment Management report says that European property will not suffer as great a slump as other investments, and will perform better than it did in the recession of the early 1990s.
Robin Goodchild, LaSalle’s European director of research and strategy, said that the hard lessons of the past 10 years had taught the property industry industry to control overbuilding and to limit speculation. “This restraint should serve investors well in 2001, giving Europe the momentum to sustain it through a short dip in the US economy,” he said.
However, the report notes that the UK is more vulnerable to a US slowdown than other European countries. LaSalle ascribes this greater vulnerability to the UK’s high level of direct US investment and to the high proportion of UK GDP that consists of exports to the US.
EGi News 15/05/01
