Henderson Property said that a wave of sovereign debt fears and a slowdown in economic growth in Europe should not come as a shock to real estate investors.
The firm has examined the upside, downside and disaster scenarios for investors in its latest Think report.
Slow growth and setbacks, structural slow growth and deflation, and sovereign default and return to recession are listed as possible outcomes.
Stefan Wundrak, director of research, property at the firm, said: “From here, it can go, at best, okay, but of course there are heightened dangers that events may take an ugly turn. We have to reiterate that these risks are not new at all and, in fact, have been widely discussed over the past two years.”
He said that investors may stay on the sidelines to see if pricing for non-prime property softens.
“After all, the best opportunities usually emerge after a bit of market disorder,” said Wundrak.
joanna.bourke@estatesgazette.com
