Spain and Ireland starting to emerge from downturn say experts
The Irish and Spanish property markets are emerging from the doldrums according to delegates at this year’s MIPIM real estate conference in Cannes.
Experts said that both markets were now proving “interesting” for investors. Pierre Vacquier, chief executive of Axa Real Estate, said “Both Spain and Ireland are interesting investors but Ireland is more attractive as the necessary price drops have taken place.”
Joe Valente, head of research and strategy for the European real estate group at JP Morgan agreed, adding: “We’re looking at doing deals in Ireland and an awful lot of funds are doing the same.”
The head of Deutsche Bank’s property investment arm (RREEF), Pierre Cherki, believes that conditions in Ireland are much more favourable than investors than a year ago. “The Irish economy is at an interesting point in time t buy good assets after taking tough economic decisions early on,” Cherki said.” After sending a RREEF market assessment team to Ireland recently he added, “they reported back that it was an intriguing country. Twelve months ago they made the same trip and said it was too early.”
However Christian Ulbrich, chief executive for Europe and Middle East at Jones Lang LaSalle said it was wise to still be cautious. “The problems are still serious even though people have got more used to them. This is not a time to get overexcited,” he said. Ulbrich argued that the strength of Germany makes it a safer option. “Germany is a safe bet whatever euro zone scenario plays out.” “If you buy a hotel in Munich and the euro zone holds together then that is okay. If it breaks up, which is the less likely scenario, given the strength of Germany it’s arguably even better.”