Commercial property investment firms are split over the prospect over a double-dip recession, it is claimed.
Investors are divided over how strong the recovery is in the
property investment market and the economy as a whole.
Asset management firm Gartmore says that fund managers are divided, some believing that the UK is heading for a double-dip recession, while others remain optimistic that the economy is robust enough to continue growth.
The company's head of UK equities Leigh Himsworth retains a positive outlook, insisting that the current slowdown in the economy, including the growth of
commercial development asset values, feels more like a pause or consolidation than the start of a downward trend.
He added: "If companies were cutting jobs and reining in expenses we would be worried, but what we've actually seen this year is lots of corporate activity.
"Businesses that are investing for future growth in this way are probably feeling pretty positive."
The investment Property Databank has recently confirmed the slowdown in the commercial property sector, with July showing an increase in asset values of just 0.2 per cent.
Posted by Allan Flowers
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