Slow down ‘to be expected’


A slowdown in the rate of decline of capital values in the commercial property market is to be expected, a leading property economist has claimed.

Ed Stansfiel from Capital Economics explained that a slower rise in the rate of commercial yields has been seen in figures from CB Richard Ellis (CBRE) and the Investment Property Databank (IPD).

"After all, capital values were down fairly substantially over the last six to nine months across all sectors of the commercial property market," he explained.

The IPD’s recent assessment revealed property returns improved in December and January and CBRE figures illustrated a fall of only 1.3 per cent last month, compared to a capital growth of -2.1 per cent in January and -4.3 per cent in December.

Commercial property investors and fund managers will be keen to hear the monetary policy committee’s decision on interest rates, which is due next week.