Major investors have been advised by property experts to build up reserves whilst prices fall, in order to be well positioned for when the market recovers.
Speaking at the MIPIM 2009 Property Conference in Cannes, the chief executive of BNP Paribas Real Estate, Phillipe Zivkovic, told his audience of 20,000 politicians, bankers, property bosses and advisers: “We need to build a war machine to make sure we are in all the right places when the market comes back.”
The expert also predicted that London would recover in terms of commercial property activity before other European cities.
Despite commercial property prices falling by roughly 27% since 2007 and being expected to fall by another 20%, Mr Zivkovic insisted that the plunging investment values and rents would attract rich, foreign investors hunting for a bargain.
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