INDUSTRY NEWS

Commercial property in London ‘to get cheaper’

Price drops in the capital’s commercial property sector are expected to continue, according to a report in the Economist.

The publication says that predictions by Capital Economics, a consultancy, imply that prices within the London office market will fall by up to 35 per cent from their peak in 2007.

It adds that the credit crunch has also seen a number of major London commercial property projects put on hold.

These include the so-called Cheese-grater building and the Walki Talkie development on Fenchurch Street.

Stating that “commercial property prices are dropping fast”, the Economist report also claims that some experts believe the market will soon bottom-out.

It cites Stephen Hester, the boss of British Land, as saying that commercial property is only now starting to reach its fair value.

Earlier this month, plans were revealed to introduce a so-called “can-of-ham” building on the London skyline which designers Foggo Architects said will rival the likes of the Gherkin. ADNFCR-1329-ID-18746418-ADNFCR