The UK is one of the safest destinations for real estate investors looking to ride out the euro crisis, according to La Salle Investment Management’s mid-year Investment Strategy report.
Germany and the Nordics are also well placed to weather ongoing economic and political volatility, according to La Salle IM. Major markets in France are also showing signs of resilience, but should be approached “cautiously”. The UK remains the most liquid market for investors targeting “safe haven” investments in core property.
The report recommends that mezzanine debt financing remains “the best risk-adjusted strategy for real estate investors in the near term” and that buyers should sharpen their focus on asset quality more than ever, even in the most stable markets.
Simon Marx, national director european research and strategy, said: “We generally expect that low levels of current and future supply will continue to support prime rents in most markets in the near-term, and offer upside in an eventual recovery, particularly in central submarkets.
“A number of office markets, such as London, have witnessed an upturn in development activity in response to low availability and this adds to the downside risks, although scarce debt availability will limit this.”
sophia.furber@estatesgazette.com
