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LaSalle Warns Of Troubled Times Ahead

LONDON-The economic downturn is likely to be sharper and will last into 2002, following the events of 11 September. But investors see property as a relatively safe haven according to LaSalle Investment Management.

By Graham Parker | Updated on September 26, 2001

LONDON-The events of 11 September will exacerbate an economic slowdown that was already gathering pace, according to LaSalle Investment Management’s Head of European Investment Strategy, Gerald Blundell. Investors will look for safe havens in quality sources of income, especially gilts (government bonds) but also property, he forecast.

‘From a European perspective, in the short-term we expect investors to consider real estate to be a relatively stable place to invest and in the long-term it will be seen as a springboard for renewed hope and future financial growth,’ Blundell said.

However, the economic slowdown will affect property sectors in different ways, and LaSalle forecasts that retail, residential and warehousing/logistics across Europe will suffer less than offices. Office take-up has already been hit by reduced demand from the TMT (technology, media and telecommunications) sector. But the investment manager notes that Grade A office rents have continued to rise in cities such as Dublin, Frankfurt, Madrid, Milan, Munich and Paris.

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