PLYMOUTH'S property sector has been hit by the recession causing particular problems for the retail, hotel and pub sectors – but it's "not all doom and gloom", experts at leading property consultants Vickery Holman say.

The firm's head of professional services Nick Holman, introducing the firm's The Market 2011 report at a well-attended Plymouth seminar, said: "The economic situation brought us no favours."

But he said that while "secondary retail operators", such as in the West End of the city centre, will "continue to struggle", and that pubs will see "mixed fortunes", for instance, there are bright spots ahead.

He listed forthcoming developments such as the Millbay marina, housing in North Prospect and around the airport, the Life Centre and incinerator.

And he said Plymouth University projects, including the marine building and Hoe Centre students flats, represent "an amazing message sent out by the city".

Nevertheless, he described the West End of the city centre's retail sector as "in distress".

And the report, which looks at what's been happening in the main commercial sectors during 2011 and makes predictions for 2012, said the loss of three major retailers has reduced footfall leaving many units vacant for "significant periods".

It said the trend is likely to prevail in 2012 "and beyond".

But it also said development proposals could help long-term, and Mr Holman said retailers were "starting to fight back".

The report also highlights how the impact of the Drake Circus mall means prime pitches are being re-established "leaving vacancies" elsewhere.

It said some national retailers have benefited from "significant incentives and flexible lease terms".

Meanwhile, the hotel sector was described as "variable at best," in 2011.

Niche and quality hotels did well but small hotels and bed-and-breakfast establishments came under "increased threat from the expansion of branded and budget hotels", Mr Holman said.

As for pubs, those with "an established food operation" have done well but Mr Holman said: "Life is still difficult, particularly for pub tenants".

The report, launched at the Duke of Cornwall Hotel, also said that due to funding difficulties for developers, new build speculative industrial development will be restricted "for the foreseeable future" in Plymouth.

Meanwhile, there is a shortage of quality units, with too many old, secondhand units, and businesses are staying put rather than upgrading due to "funding difficulties".

Good quality city centre offices remain scarce too, in Plymouth, with parking "a key factor for office requirements".

But there are too many low grade offices, for the demand, and more than enough out-of-town offices.

The report, also predicts that there will be little growth in residential property values in 2012 as the jobs market continues to remain uncertain.

And in the residential care market there will be "further turbulence", as margins continue to be squeezed.

But while Mr Holman said there was "no prospect" of pre-recession property values returning in the short- or medium-term, the right property in the right location will still attract interest and value.

And he stressed deals will still be done, saying: "The wheel of the market will continue to turn."

He said: "There will still be a pub, coffee shop or restaurant where you can still reflect and crystal ball gaze satisfied that we are not wasting our time."