Recent press coverage has again highlighted the perceived wisdom that we will see a rapid acceleration in the flow of property onto the market from banks, and that pricing will be depressed by an excess of supply over demand. This view has been aired at roughly annual intervals since the bottom of the market in the first half of 2009. However, we expect that the banks will not result in a flood of property that will materially depress pricing in the short term.
In coming to this conclusion, we have considered : the drivers of the banks' desire to reduce their exposure to real estate, the implications of various courses of action, and the behavior of the banks since the bottom of the market in 2009.
Source : CBRE