3. Yet, the disparity in haircuts lasted for almost two years. In fact, the pessimism and risk-aversion of the Seppenwolde lenders reduced the overall availability of leverage in Amsterdam.
4. Copestake said fears over economic austerity and the stability of the euro had pushed the index of euro zone cities down in the past year while the inclusion of Caracas was due to artificially high exchange rate controls.
Erle Spratt, who manages M&G’s Asia property fund, an open-ended investment vehicle, says it is risky to invest directly because assets are not easy to find and price. “It is a very difficult market to buy assets in for investors like us, because developers have very substantial holdings and they tend not to sell,” he says.