Aberdeen Asset Management is more pessimistic on the real estate sector than at the beginning of the year. ‘Back then investors had a little more appetite for risk. Then after Easter the debt crisis appeared on the horizon in Greece and sentiment tightened,’ Alessandro Bronda, Head of Investment Strategy at Aberdeen told PropertyEU at EXPO REAL in Munich.

Aberdeen Asset Management is more pessimistic on the real estate sector than at the beginning of the year. ‘Back then investors had a little more appetite for risk. Then after Easter the debt crisis appeared on the horizon in Greece and sentiment tightened,’ Alessandro Bronda, Head of Investment Strategy at Aberdeen told PropertyEU at EXPO REAL in Munich.

European governments increased spending during the recession last year and this transformed 5% negative GDP growth into positive growth. Bronda said the situation will be very different in 2011 as governments have introduced austerity measures. ‘This will translate into weaker economic growth and weaker rent growth.’ Aberdeen is forecasting ‘a bit more momentum’ in 2012. Bronda noted that as Europe's population is not growing it is important for investors to take account of the fact that spending power per capita in Europe will remain high on a relative basis.