“It is important for financing problems to be worked out, and for price cuts to come into force,” Benoit du Passage, head of Jones Lang LaSalle for southern Europe. “If access to financing is freed up ... that would be very good for the market,” he said.
Morgan Stanley, and Germany’s Allianz among others, are predicting discount purchases in the second half and in 2010, in low-risk markets like London, where there is liquidity and where average prices have plunged more than 37% since the June 2007 peak.
“London has seen the strongest reduction in values since 2008. I’ve seen meetings (at MIPIM) and I’d be surprised if they didn’t come to something,” Mark England, chief executive for BNP Paribas Real Estate unit Atisreal said. (Reuters)
