INDUSTRY NEWS

Commercial property takes 2% dip

Commercial property values took a two per cent dip in June, according to the Investment Property Databank (IPD).

Retail property values fell furthest (2.4 per cent), although rental growth remained the same as in May (-0.4 per cent).

The rate of falling commercial property values has almost doubled since May, the IPD confirmed, when values dropped 1.2 per cent.

"The accelerating downward pressure upon returns still primarily reflects adverse yield adjustments," commented Ian Cullen, IPD co-founder.

"Rental value movement, though negative for the second successive month, remains barely measurable".

This continued decline has taken yearly figures to their lowest since April 1991, when the index showed an annual fall of -8.1 per cent – today’s figures dragged it down to -14.9 per cent, it was reported.

Fund managers and potential investors are hoping to predict when the market ‘bottoms’ so they can get cheaper commercial property in London.

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