INDUSTRY NEWS

DTZ: Commercial property should ‘expect global slide’

Global real estate advisor, DTZ, has published research that suggests global commercial property values will fall in value.

The company’s Money into Property report found the recent decline in UK commercial property prices lowered its projections for 2008.

"The downturn is not going to come to an end quickly and when it does the market won’t be the same as before for debt and finance," Robert Peto, chairman told the Financial Times (FT).

According to the research, UK commercial property values have fallen 18 per cent since summer 2007 and are set to drop by a quarter over 2008 and 2009 as a whole.

It revealed most lenders expect a prolonged period of tightening prices, although they intend to increase allocations to global real estate by four per cent, the FT reported.

Despite falling commercial property and residential values, consumers have continued to spend.

Vicky Redwood, Capital Economics, has warned high demand "increases the chances that retailers could pass on their sharp rises in costs into prices at shop level" and force inflation further upwards, to four per cent.

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