Still largely optimistic, says Lloyds
While fund managers’ confidence has been shaken in recent months by the economic downturn, major businesses still appear optimistic – particularly regarding their own prospects. These are among the findings of the latest quarterly Lloyds Banking Group’s Commercial Property Confidence Monitor.
The survey, conducted during May, came ahead of last month’s Emergency Budget and took place during the worst of the worries about the Greek economic crisis. This is bound to have had some effect on the results and perhaps explains the reduced confidence among fund managers compared with the other property professionals surveyed.
Brian Darling, real estate director at Lloyds Banking Group, said: “The market has reacted well to a period of uncertainty. Although confidence has taken a hit, property professionals remain largely optimistic about the second half of the year.”
With regard to property values, businesses are still on balance expecting increases in the next three months, but principals at medium/large businesses and fund managers have both slightly reduced their net positive position. Looking at sectors, most groups surveyed said they expected housebuilding to show the best performance during the next 3-6 months, although fund managers expect offices to be the major success area.
