Thu 12 Jun 2008
Market will bounce back in a year, say economists
Economists addressing the British Property Federation’s (BPF) annual conference maintained that the property industry’s fortunes are set to recover by 2009 as the market becomes more transparent.This optimism is in marked contrast to a warning issued by Bank of England governor Mervyn King, who told the press the UK is passing through “the most prolonged period of financial turmoil that any of us can remember.”
“Current challenges will be offset by greater transparency in the market,” said Joseph Azrack (pictured), president and CEO of Citi Property Investors. “The aim now should be to be as realistic as possible in business about the state of the current market, to help to resolve the issue faster.
“The market has now been bottomed to clear prices – 2009, 2010 and 2011 is set to be the best vintage property investment period for the real estate industry for the last 15 years.”
“All banks have been backward looking, and none factored in the drying up of liquidity,” added Sir David Walker, senior adviser at Morgan Stanley International. “We can’t know how long the financial upset will impact on the economy, although it’s certain that one way to get credit now will be through sovereign funds.”
Many other topics were covered at the conference, which understandably featured a strong focus on investment and staying afloat in a difficult market.
However, housing minister Caroline Flint, while praising the new wave of British sustainable development, was noticeably silent on the eco-towns issue. The government’s plans to build 10 eco-towns across England by 2020 are currently attracting 2,000 new signatures a day in petitions opposing them,
When asked by Show House why investors or builders would consider supporting a project the public appear to be much opposed to, Communities and Local Government spokesman said: “Eco towns are at the forefront of the new planning process. We are engaged in consultation and assessment in a test number of sites and locations.”
Posted by Marc Da-Silva
in Bank of England, British Property Federation, Caroline Flint, Citi Property Investors, Joseph Azrack, Mervyn King, Morgan Stanley International, Sir David Walker on Thu 12 Jun 2008
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