Horrell said he expects levels of cross-border investment within Europe to hold up, with the German funds continuing to dominate the market. And if anything the war could reinforce the attractions of property investment, he said. "The relative attraction of income producing commercial real estate in Europe could be further reinforced during a time of economic uncertainty, particularly amongst private investors and debt-driven purchasers. We expect retail to be the most popular sector looking forward, and foresee higher volumes of trading compared with previous years," he forecast.
But a longer, inconclusive war would bring damaging economic consequences, JLL's researchers warned. Head of European Research Nigel Roberts said: "Should the intervention prove to be longer-term we can expect it to hit corporate profits, business and consumer confidence, and have a significant downward impact on global demand and economic growth. Along with higher vacancy rates and declining rental levels, this scenario would in the end impact the current strong interest of investors in property as an asset class."
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