Property sector cautiously optimistic: JLL

The mood of the property sector at this year's EXPO REAL is 'cautiously optimistic', Jones Lang LaSalle’s Head of European Capital Markets Tony Horrell said in an interview with PropertyEU. 'There seems to be a bit more positive sentiment. At the same time, nobody is talking about development and very few of the opportunistic players have turned up at this year’s event. It’s all about secure income at the moment.'

The re-pricing seen in a lot of markets is creating opportunities in most European countries and once that re-pricing reaches the right levels investment activity will pick up, he added. London and Paris are likely top be among the first cities to see a rise in investment, as the price correction has been the most extreme. Other markets will pick once they admit to themselves that prices have not bottomed out yet, Horrell said, citing Ireland as a prime example of a market that has to face further price drops. Poland and the Czech Republic are the most promising markets in the CEE region, Horrell added.

Horrell said he does not expect to see any surge in distressed property sales, as the banks have too much invested and cannot afford to flood the market. 'What we’re likely to see is the appointment of third party managers who can make the most of existing property portfolios,' he said.