Commercial property prices on the up, says Prudential
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Green shoots in commercial property are emerging and an upturn in prices is expected to continue for some time, according to Prudential director of investment John Betteridge.
Speaking at the Money Marketing RDR and economic update at the Grocer’s Hall in London this week, Betteridge said: “There have been dramatic falls in commercial property and what’s starting to happen now is that prices are increasing.
“Just as commercial property prices fell during the latter half of 2008 and the first half of 2009, on very little volume of transactions, what we’re seeing now is exactly the opposite taking place. And that may continue for a while, even though the occupational market is looking very sick indeed.”
Defaqto economist Michael Baxter added that despite recent “hiccups”, the global economy is likely to see an upturn similar to the 3.33 per cent growth seen between 1950 and 1973.
He said: “I think the global economy probably is about to experience significant growth comparable to that period.”
Asked whether he supports FSA chairman Lord Turner’s calls for a Tobin Tax on banks to curb bonuses, Betteridge said acting independently of other global financial centres is “a silly idea”.
He said: “The UK has always attracted very clever people. If you want a Tobin tax then you need to apply it on a global scale. We don’t want to destroy an industry that has become very powerful and very important in the UK.”
The RDR debate day has been sponsored by Prudential , Avivaand Legal & General.
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