The commercial property market has recently sustained damage that will affect it until the turn of the century, one expert has claimed.
Simon Cooke, of Close Investments, says that investor confidence has been destroyed by recent developments – with falling property prices, including offices in London, and the actions of some investment firms causing particular concern.
"Property will be seriously undervalued at the turn of the decade and the long-term effects of this cannot just unwind in 2008," the Citywire news service quotes him as saying.
"Some companies have reacted in a knee-jerk way and have generated further fear which has shattered confidence, and investors will now take a negative view of property for some time," he said.
Investors will be much more cautious from now on, he said – and this new attitude will persist until at least 2010.
"If the sector continues to act as it is now it will hurt confidence for a long time, and the faster it is re-priced the faster it will recover."