Commercial property markets can expect to enjoy long-term stability, a new report has concluded.
Research for Investec Private Bank’s Structured Property Finance division by Property Week, has revealed the majority of property professionals think values will stabilise before 2009, property portal, Home Move has reported
The bank’s poll questioned 137 experts – more than half (57 per cent) believe valuations will stay around the same level, while 39 per cent think they will continue to fall.
A member of its team told Home Move the research demonstrated how falling commercial property prices had hit secondary property hardest.
The study showed most investors believe the market will reach its floor this year.
It found 60 per cent intend to retain their current exposure, a quarter are set to increase their investment, but 15 per cent will cut back their holdings in the commercial property market.
Builders are currently struggling to finance their developments – Barratt has announced it is to fire 1,000 workers and Taylor Wimpey has been forced to let 900 employees go.