Aberdeen: investment managers can no longer rely on rising property prices to generate returns

In this environment, managers will have to employ a more active style, take a sharper regional and sector focus and be more selective when investing in property, he said. Moreover, the credit crunch should serve to slow the development pipeline in the medium to long-term, limiting new supply, supporting rental growth and making managers’ ability at raising their portfolios’ rental values an increasingly important factor in generating returns. Underpinned by strong economic growth and low interest rates, returns on European property hit a healthy 13.3pc last year. A significant p...