An electronic poll of fund managers, analysts and traders has revealed their predictions for commercial property returns in 2009.
According to Reuters, almost 75 per cent of those surveyed at an industry briefing forecast a negative performance.
Bill Hughes, managing director of insurer Legal & General’s property fund business said: “There is no room for optimism about (property) returns until 2010 at the earliest,” the agency has reported.
It said only slightly more than one-fifth forecast returns better than -10 per cent – six out of ten predict total returns for the second half of this year will be less than -5 per cent.
Banks have cut back on their lending to personal and business investors. Not only are lenders finding it harder to source credit, they are also increasingly cautious who they lend money to.
The British Retail Consortium is backing an initiative to allow retailers to pay their rents monthly in advance not quarterly.