Real estate stocks have hit a 20-year low after continued falls in commercial property prices, Bloomberg has reported.
It cited data from the Investment Property Databank, which revealed shops, offices and warehouses lost almost one-fifth (18 per cent) of their value since prices peaked in 2007.
Patrick Summer, head of real estate stocks at Henderson Global Investors, told Bloomberg: "Real estate is getting very cheap if you look at the fundamentals."
Demand for rental accommodation is lessening, leaving lots of top quality commercial property available for firms looking to move office.
Rents are also falling. According to CB Richard Ellis, rents in the City fell by 1.3 per cent in May, making commercial property in the heart of London’s business district more affordable.
Bloomberg reported property stocks have fallen for 15 of the last 18 months and are 52 per cent lower than their best ever price.