The threat of terrorism should not sway investors looking at safe haven markets, according to JLL’s director of capital markets Andrew Hawkins.
“We should not underestimate the attraction of political stability in cities like London. But equally, we can’t afford to be complacent. Everywhere faces a risk of terrorism. But you can’t base an investment strategy around terrorist threats, can you?”
The predicted slow-down in the Asia-Pacific region is likely to see increased capital flow towards Western ‘winning’ cities including London, New York, Washington and San Francisco, added Hawkins.
Colliers International’s head of EMEA cross-border capital markets, Richard Divall, warned that this could see overcrowding in safe haven markets as investors scramble for the same assets.
But with the top of the market in site for many mature locations, George Bush’s former economic adviser Dr Pippa Malmgren said that whatever happens, there is no stopping the real perennial real estate cycle: “Property is like falling in love. You don’t know how much it hurts when it goes wrong until it happens. And then you do it all over again anyway. It’s human nature.”
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