mast image

Special Report

Impact investing

Sections

Euro to have significant effect on property market

Related Categories

EUROPE – The introduction of the physical euro will have a significant symbolic impact on investor confidence in the European real estate market, suggests Lasalle Investment Management’s (Lasalle IM) latest ‘Investment Strategy Annual’ report.

According to Lasalle IM, there will be an increase in cross-border investments within Euroland as investors exploit their newly expanded domestic markets, with property expected to produce greater price stability than equities and higher yields than bonds in the coming year.

Nonetheless, Lasalle IM also warns that investors need to be aware that they will be affected by the global economic slowdown and that successful investors will need to follow a “careful balancing act” with their portfolios.

Moreover, the relatively positive prospects of the European property markets vis-à-vis the US are being hampered by the disappointing economic performance of both Germany and France, the report claims.

Says Gerald Blundell, head of investment strategy at Lasalle IM: “Property in Europe is not immune to the effects of the global slowdown, and investor expectations for 2002 are very different from those of 12 months ago.”

Elsewhere, Lasalle IM’s report suggests that the UK should be viewed as a separate property market within Europe due to its position outside the Euro-zone, and that the UK market is likely to avoid the worst of the downturn. However, Euro-zone investors will consider the UK market expensive, despite its greater transparency and liquidity.

The report also anticipates that the Central and Eastern European property markets will improve once serious negotiations for entry into the European Union get under way.

Have your say

You must sign in to make a comment

IPE QUEST

Your first step in manager selection...

IPE Quest is a manager search facility that connects institutional investors and asset managers.

  • QN-2548

    Asset class: Fixed Income, Emerging Market Debt Hard Currency (Active).
    Asset region: Emerging Markets.
    Size: CHF 300-400m.
    Closing date: 2019-07-30.

  • QN-2549

    Asset class: Fixed Income, Emerging Market Debt Hard Currency (Passive or Passive Enhanced).
    Asset region: Emerging Markets.
    Size: CHF 300-700m.
    Closing date: 2019-07-30.

  • QN-2550

    Asset class: Fixed Income, Emerging Market Debt Local Currency (Active).
    Asset region: Emerging Markets.
    Size: CHF 250-350m.
    Closing date: 2019-07-31.

  • QN-2551

    Asset class: Fixed Income, Emerging Market Debt Local Currency (Passive or Passive Enhanced).
    Asset region: Emerging Markets.
    Size: CHF 250-350m.
    Closing date: 2019-07-31.

  • QN-2552

    Asset class: Fixed Income, High Yield (Active).
    Asset region: High Yield (US).
    Size: CHF 500-600m.
    Closing date: 2019-07-29.

  • QN-2553

    Asset class: Fixed Income, High Yield (Passive or Passive Enhanced).
    Asset region: High Yield (US).
    Size: CHF 500-1'100m.
    Closing date: 2019-07-29.

  • QN-2554

    Asset class: Global Real Estate (Equity, unlisted Funds).
    Asset region: World (ex-Switzerland).
    Size: CHF 200 mn (potential for further growth).
    Closing date: 2019-08-07.

  • QN-2556

    Asset class: FX Hedging.
    Asset region: Global.
    Size: Mandate size of CHF 1.5 bn.
    Closing date: 2019-08-09.

  • QN-2557

    Asset class: All/large Cap Equities.
    Asset region: China A-shares.
    Size: Unit linked platform (0m USD in initial investment).
    Closing date: 2019-08-01.

Begin Your Search Here
<