Lauren Parr

Lauren Parr is news editor at Real Estate Capital, a London-based publication that covers property finance throughout Europe.

Anticipating that GDP will decline during the Olympic Games due to traffic chaos, London has planned in reverse, focusing on the opportunities presented for infrastructure and regeneration post-Games. Given London’s housing shortage, the Athletes’ Village was designed to accommodate families and individuals and retrofitted for the athletes, not the other way round.
The “Great Reset,” driven by the decline of manufacturing in favor of knowledge economies, is bigger than the shift from agriculture to industry, said Richard Florida at ULI Europe’s Trends Conference.
If Greece were to exit the 17-nation union, the Eurozone’s gross domestic product would fall by 2 percent before there would be intervention, predicted Andrew Garthwaite, global equity strategist, investment banking, at Credit Suisse, at the ULI Europe Trends Conference in London last week. The effect would spread to Portugal, Italy, and Spain, he added.
In the Emerging Trends in Real Estate Europe 2012 survey of more than 600 European property professionals, Istanbul was identified as the top European market for both investment and development.
“Rather than focusing on asset types, [real estate is] going to be about finding individual opportunities,” says ULI member John Forbes, author of the Emerging Trends in Real Estate Europe 2012 report.
Europe’s economic crisis has left real estate investment and development in limbo, with little relief expected, according to Emerging Trends in Real Estate® Europe 2012, the annual industry forecast published by ULI and PwC.
New lending by European banks is likely to remain strictly conservative, limiting liquidity for the European property market.
As a result of the Eurozone’s sovereign debt crisis, financial institutions are trying to raise additional equity through asset sales—with opportunities presenting themselves over the medium term.
Restructuring of the European banking sector has come a long way since the onset of the financial crisis. Loan sales are expected to rise in the coming months as banks off-load noncore assets following the Royal Bank of Scotland’s sale of £1.4 billion (US$2.3 billion) of U.K. property loans to Blackstone in July. Read what Marc Mogull, chair of ULI U.K. and founder of London-based Benson Elliot Capital Management, sees ahead.
The London real estate market presents opportunities for all investors—from those seeking core returns to those with an appetite for risk. Thanks to its transparency, international investment is a solid feature of the property market, maintaining its presence even in the depth of the financial crisis. Read more to learn about ULI member Greg Cooke’s top ten reasons for investing in London.
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