A survey in January and February 2008 of 54 property investors and bankers (controlling funds worth €130billion and €265billion respectively) reveals diverging options about European commercial real estate markets.

Bankers  are far more pessimistic (and confused) about UK property than investors, but are most optimistic about the new central and eastern EU states and Germany.

The UK may offer both the best and the worst opportunities for investors, who also identify Germany as a good market into which to invest.

Bankers also identify Germany as well as the UK (followed by France) as the location for the best lending opportunity

Spain is perceived as the worst country by both bankers and investors, but many bankers also see the UK as the worst lending location (and investors the worst investment country).

About 90% of investors think the current collapse in capital values will have ended by early 2009, but only 70% of bankers share this sentiment. 1) Most believe yields on long-dated government bonds will fall, and almost all think short-term interest rates will also fall; 2) The biggest worries are that stock markets will fall in the UK, Spain and the USA (S&P 500); 3) But almost all countries are expected to enjoy rental growth in 2008, according to the King Sturge survey – all three factors may be good for the European property investment markets.

Download - European Property Investors & Bankers Survey 2008 PDF