UK commercial property values will head south and debt will be the big opportunity this year.
At the Outlook for UK Property 2012 seminar, held jointly by the Investment Property Forum and the Society of Property Researchers, panelist Neil Parker, market strategist at RBS, forecast a recession in Continental economies, but the UK keeping positive with 0.8% GDP growth.
Anne Kavanagh, AXA Real Estate’s global head of asset management, said: “There’s very little upside in prime property so we will access it via development. Secondary needs large price falls, but also economic growth, so we won’t be doing much in the UK” except alternatives like healthcare.
Late 2013/early 2014 might be the time to buy secondary UK property, she indicated.“Debt is an area of great interest. We will increase our allocation in 2012.”