Real estate “not like after Lehmans collapse” – Invesco

Commercial property values will hold up and not plummet as they did after the Lehman Brothers collapse of 2008 despite stock market volatility being similar to three years ago, says Invesco Real Estate.

Two reasons are liquidity and valuations.

Liquidity exists because banks are still willing to lend at reasonable rates to corporate occupiers with growth prospects and to investors with solid ‘core’ real estate. This wasn’t the case three years ago.

Meanwhile, values are still well below historic peaks across most real estate sectors in developed markets, even after the value increases experienced over the last 12 months.

Simon Mallinson, European research director at Invesco Real Estate, says:“We believe the current investment conditions are fundamentally different to those of 2008, and there is ample reason to be optimistic for next year.”

©2011 funds europe

HAVE YOU READ?

THOUGHT LEADERSHIP

The tension between urgency and inaction will continue to influence sustainability discussions in 2024, as reflected in the trends report from S&P Global.
FIND OUT MORE
This white paper outlines key challenges impeding the growth of private markets and explores how technological innovation can provide solutions to unlock access to private market funds for a growing…
DOWNLOAD NOW

CLOUD DATA PLATFORMS

Luxembourg is one of the world’s premiere centres for cross-border distribution of investment funds. Read our special regional coverage, coinciding with the annual ALFI European Asset Management Conference.
READ MORE

PRIVATE MARKETS FUND ADMIN REPORT

Private_Markets_Fund_Admin_Report

LATEST PODCAST