INDUSTRY NEWS

UK ‘has most accurate commercial property valuations’

Valuations of commercial property in London and other parts of the country are among the most accurate in Europe.

That’s according to the Royal Institute of Chartered Surveyors’ Valuation and Sale Price Report which says most valuations fall within ten per cent of sale prices.

In 2007, 60.4 per cent of UK commercial property valuations were correct to within ten per cent of the actual sale price.

This is compared to the Netherlands where just 50 per cent of commercial properties were valued within ten per cent of what they eventually went for.

Spokesperson for the group Luay Al-Khatib said: “Business demand in the UK was hit almost immediately following the onset of the credit crunch with tenants having to re-assess risk in the latter part of 2007.

“With banks choking on the credit stranglehold, many investors were forced to sell below the valuation price as opportunists circled for a bargain.”

He added that the report was a “vital measure of valuations” as it helped to ensure the link between valuation and selling price are closely monitored.

“In the current challenging and rapidly changing market it is more important than ever that investors have faith in their valuations,” he said.ADNFCR-1329-ID-18860451-ADNFCR