The European real estate sector faces further 'haircuts' as the spectre of stafglation looms large, Reggie Middleton, a leading consultant credited with predicting the collapse of both Bear Stearns and Lehman Brothers, warns in the May edition of PropertyEU Magazine. 'I don't see how further devaluations are avoidable if interest rates rise and I think rates are almost guaranteed to rise,' he said. 'The NOI side of the equation is bound to take a hit as austerity plans and a sluggish economy equate to lower operating incomes.'
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