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The commercial property recovery will not happen until 2010, the Investment Property Forum (IPF) has announced.
The independent organisation revised its predictions of a partial recovery in 2009. Its consensus forecast also predicted that total returns for commercial property will fall by a further 5.7 per cent, Property Week has reported.
"The 2010 forecasts show improving total returns on the back of stronger capital value growth and a limited return to positive rental value growth," the IPF’s forecast said.
It estimated total return figures for the West End and City Offices would be below inflation and negative, respectively.
Despite the renewed interest in the commercial property market by foreign investment firms, Property Week reported the IPF said offices will perform worst in 2009, because of "substantial reductions in both rental and capital value growth figures".