INDUSTRY NEWS

Commercial property prices fall

Commercial property prices have again fallen, the Investment Property Databank has revealed.

Its UK Monthly Property Index showed all property returns fell 2.4 per cent in September, the most significant dip since December 2007.

Ian Cullen, co-founding director, said: “The charts indicate a second dip, but the underlying numbers reveal that if the first dip was yield rather than rent driven, we are not yet through the first.”

All three sectors covered by the report continued to slip including offices (-2.4 per cent), retail (-2.6 per cent) and industrials (-1.9 per cent).

The figures showed a weaker performance from commercial property, when compared with August’s results of -1.3 per cent, -0.9 per cent and -1.3 per cent respectively.

The UK government has acted swiftly to increase the liquidity of money markets and injected billions of pounds into the banking system.

By making more funds available, it hopes to promote more borrowing, which in turn should help developers launch new commercial property schemes in the City.ADNFCR-1329-ID-18827113-ADNFCR

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