Property markets expected to make slow start in 2012
Published on
08/03/2012 16:33:43
UK commercial property markets are predicted to make a slow
start at the turn of the year, with high hopes for a strong end to
the year, according to the latest analysis from Jones Lang
LaSalle.
Property predictions from the global real estate services firm
reveal consumers will continue to bear the brunt of the economic
squeeze in the UK. Consumer spending is expected to be flat
throughout the next 12 months and many other sectors are not
expected to fare much better.
Office employment figures may well improve although demand for
office space to rent is likely to
remain limited by the frailty of the financial and public
sectors.
Richard Batten, UK executive chairman at Jones Lang LaSalle,
said: "Growth is likely to fall into two phases in 2012. The first
six months are expected to be flat at best, with the possibility of
a slight dip.
"But the second half should be brighter. Hard evidence on the
direct economic effects of international sporting events is patchy,
but they often mark a turning point in sentiment.
"It is hoped that the London Olympics will provide a much needed
boost to confidence. This along with the benefits of another burst
of asset purchases by the Bank of England should begin to have an
economic stimulus after mid-2012, when activity is expected to
improve, albeit fairly slowly."
The medium term outlook is that investment volumes in commercial
property will remain thin for the early part of the year. However,
there is a prospect of a revival in occupier demand once the
economy shows signs of renewed stability.