Despite the continuing negative economic data and, perhaps more importantly, the never ending capacity of Euro politicians to put short term politics ahead of long term stability, there are many people within UK Real Estate who believe that the end of the “quiet period” (i.e. the summer) will herald the return of large numbers of buyers and sellers to the UK Property market. Whilst we certainly hope that this will be correct, our own view here at Knight Frank Investors is that the turmoil in the markets still has a long way to go before it has entirely unravelled and the property markets return to anywhere near normality.
The truth of course is that the lack of any firm decision making by the political masters across Europe means that the future prospects for property investment, be it commercial or residential property, are very difficult to predict. Despite this, I think we can be pretty sure that whatever does happen it will not be straightforward and, whether it be offices, industrial, retail, residential or any of the alternative Real Estate sectors, there will inevitably be a lot more bumps and pot holes in the road ahead; how well these are navigated will dictate the amount of pain that is still to come (and pain there will certainly be!!). However, history clearly tells us that with pain comes opportunity and the real challenge for those of us in the property investment world is to maximise that opportunity; which, as usual, will be all about timing.
Recognising the fast moving and, dare I say it, sometimes illogical nature of current political decision making, the team here at Knight Frank Investors believe that it is very important to regularly communicate what is happening and, most importantly, the implications for the Property Investment Market. We have been persuaded by our rather excellent and innovative head of PR and Communications that the best way of doing this is via the rather scary world of “the blog”. Interestingly, Wikipedia defines a blog as “a portmanteau of the term web log”, whatever that might mean, whereas an acronym website that I discovered defines it as a “Big Load of Gossip”! Whilst some might consider the word “gossip” to be synonymous with the property world, our own musings will of course be well thought through opinions and observations with plenty of substance!!
Anyway, over the coming weeks and months, we will look to provide an insight into how we expect the UK property markets to react as the European economic and political map finally begins to take shape (we hope!) and how this will impact on the future performance prospects for property investment. It would of course be great to receive any feedback that you might have but, otherwise, watch this space.
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