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Property Investors Warned of Stormy Times Ahead

LONDON-Property investors need to review their strategy in the face of a rapidly decelerating world economy, according to LaSalle Investment Management. But the slowdown also presents some opportunities.

By Graham Parker | Updated on January 04, 2002

LONDON-The brakes have gone on and as the world economy slows down, property investors need to take a fresh look at their portfolio strategy, according to LaSalle Investment Management.

Major markets across the world are already seeing a burst of sublet space coming to the market as companies look to trim their liabilities, and this will potentially slow rental growth and hit investment returns. However, with both the London and New York stock exchanges finishing down for the second consecutive year property still has an important role to play in a mixed-asset portfolio, say the asset managers.

As times get harder in the property market LIM expects investors to focus more on their domestic markets, with a consequent fall in cross-border investment. Investors are expected to take a more defensive approach to portfolio strategy, while still looking to position themselves for the eventual upturn.

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