In This Issue:

- Economic background

- Global real estate investment - recent trends

- Euro crisis: property markets impacts

- Polarisation in European investment markets

- Outlook: risks and alternative scenarios

Eurozone Crisis: Costs of ‘Muddling Through‘

• Crisis containment, with recurrent stress

• Economic position worsening over past year

– UK and euro zone in recession

– Sharp contraction in euro periphery

– European banking system troubled and fragmented

– Deficit reduction policies becoming self- defeating

– Growth outlook for 2013 weaker

– Uncertainty continues, and itself stifles activity

• ECB bond-buying: bazooka or buying time more?