0 minutes Less than a minute read
The recent drop in commercial property prices was most significant in central London, according to figures released by Property Data.
Overall, transactions in the fourth quarter of last year were down in value by two-thirds, however, figures for central London fell from £6.7 billion to just over £1 billion, the Financial Times has reported.
A spokesperson for Property Data said: "The market has basically frozen since the middle of the third quarter."
The research company also confirmed that rent as a proportion of a building’s price has risen in the last quarter from 4.93 to 5.52 per cent, a further sign of difficulty in commercial property markets.
Offices in London continue to attract foreign investors as the capital is regarded as one of the most influential international business centres.
The results reflect current difficulties in international credit markets and were surprising as the final quarter was usually the busiest of the year.