The property sector is set to face a tough second half of the year as government austerity measures hit investment returns, it has been claimed. ING REIM chief executive Kevin Aitchinson has warned that the asset class could face a setback after a positive first six months, Professional Pensions has reported.
The news comes just after JP Morgan Asset Management revealed that a large number of institutional investors are expecting the global real estate market to pick up in the coming years. In particular, investors believe that the strongest returns will be seen from emerging Asia.
However, Mr Aitchison told the news provider that he expected overall demand to remain relatively flat in 2010, although prime property represents a "significant opportunity" for pension funds. He added that ING economists were predicting a long period of low interest rates, which will offer plenty of opportunities on bond yields and rental rates.