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Commercial property deals have dropped 52 per cent in the first quarter of 2008, new research has revealed.
The figure is in comparison to exchanges in the first three months of 2007 and according to property advisor, Cushman & Wakefield, buyers remain cautious, it was reported.
"On balance, the market will see further pain in the months ahead but in the latter part of the year, a firming in economic confidence allied to an increased supply of opportunities, should be the catalyst for a steady recovery in activity," David Hutchings, head of European research, told the Birmingham Post
Conditions have improved since the last quarter of 2007, giving investors hope the market is stabilising.
Banks are now more cautious in their lending and the "due-diligence process is more protracted", he noted, which has slowed down completions.
Effects of the US credit crunch have spread across the globe. Cushman & Wakefield noted European investment volumes in the first three months of the year fell 37 per cent on the same period in 2007.