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The commercial property market is facing its worst year since the early 1990s crash, it has been claimed.
A new survey of forecasters, including the world’s biggest property consultants CB Richard Ellis, states that returns will go down to virtually zero by the end of this year.
This will follow on from a steep correction in the market, which knocked around £14 billion of what was previously a £350 billion investment market between the months of July and October.
It is predicted that the market will fall by even more through to the end of December, The Sunday Times, the original publisher of the report states.
The commercial property market in London and elsewhere in the UK has suffered from a large change in sentiment in the period since this summer’s credit crunch. Offices to rent in glamerous locations such as the City of London is forecast to suffer from weak demand.
Out of town retail warehouses may also be hard hit, the economists state.