INDUSTRY NEWS

Value of UK commercial property set to fall next year

With the European debt crisis worsening, analysts at Bloomberg News have forecast that the value of commercial property in the United Kingdom  will fall by around 4.9 per cent next year.

The National Institute for Economic and Social research have previously stated that there is a 50 per cent chance of the British economy falling back into a recession.

Values for shops, offices and warehouses in UK – including commercial property in London – has recovered over the past two-years, but this has now petered out.

Ed Stansfield, Chief property economist at Capital Economics Ltd., assessed the current mood within the UK commercial property market.

He said: “Businesses are not feeling confident,” adding: “They’re not investing, they’re not employing, none of which is good news for the commercial property sector.”

According to data released by the Investment Property Databank, the average value of commercial real estate in the UK fell by 0.02 per cent during November.

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