Commercial Property News and Comment

But on the other hand...

August 2001

Latest indicators show that the UK economy is managing to weather the global economic slowdown. Despite sustained stock market weaknesses, consumer confidence in the UK remains strong, underpinned by a robust housing market, tightening labour market conditions and a low interest rate environment. Economic activity is forecast to remain respectable over the next 18 months with GDP growth expected to average 2.5% - in line with its historic trend.

Despite a slowdown in investment performance, the UK commercial property market has continued to outperform other competing asset classes by a considerable margin. Looking ahead, institutional intentions towards property over the next twelve months are likely to be influenced by the anticipated performance of other investment assets.

(Source: Knight Frank UK investment commentary Q2 2001)