Property Snapshot February 2009

Published: January 2009
Source/Company: Colliers CRE

Abstract:
Dear Readers...

I keep looking for positive signs to report, but I am afraid that the signs are few, far between and mostly equivocal. I note that the much watched Nationwide Confidence Barometer has finally fallen into uncharted (or at least unlabelled) negative territory. Like other commentators, I have come to the view that this recession differs from all others as it is the first ‘internet’ recession. I suspect that the rapid collapse and depth of negative sentiment is partly a function of the ease and rapid dissemination of negative information. I am of the vague hope that the ‘real’ economy will not follow this sentiment slavishly.

On a positive note, I remind myself daily that property markets (like the economy) are cyclical and I share a growing consensus that the bottom of the ‘bond-like’ property market can be called. Interest in properties with long leases and strong covenants is strong across all sectors as investors look for secure income streams. Pricing in other market segments is beginning to look very appealing to international investors (especially with weaker sterling) and enquiries have increased noticeably in our City and West End offices.

As usual we will continue to track deals and data for new trends as they arise.