INDUSTRY NEWS

Negative commercial property data ‘could be inaccurate’

Analysts have said that although figures show commercial property prices are drastically falling, the data could be inaccurate.

A report in business newspaper Citywire, says some economists believe that nervousness is skewing the way the commercial property market is being perceived.

Mike Prew, analyst at Nomura Securities, told the publication that people should be weary of the “doomsday like views” which have emerged since figures have been released.

Earlier this month, the Investment Property Databank (IPD) said the UK Monthly Property Index for October 2008 showed the market had experienced negative growth of –4.3 per cent.

But the report also issued a warning that users of these figures should be cautious about how they are read.

“Be aware that many of the valuations underpinning the returns and capital and rental value movements have been issued with warnings about heightened uncertainty – in accordance with Rics Valuation Standards which allow for such warnings when data may be confused, incomplete or inconsistent as a result of market instability,” IPD stated.ADNFCR-1329-ID-18881739-ADNFCR

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