Commercial property prices fall again in December

Office design news from Morgan Lovell

Published on 21-01-2009

Commercial property prices in the UK fell by 5.3 per cent in December, according to the IPD UK monthly index.

However, a spokesperson for the UK residential and commercial property agent Savills has said that these figures could be an underestimate of the true impact of the ongoing recession on the sector.

He noted: "There is a lack of evidence of quite how far prices have moved over the last 18 months.

"I think on a national level we will see a further ten per cent fall this year."

Furthermore, the Royal Institute of Chartered Accountants has predicted that commercial property capital values could fall by 25 per cent in the next two years.

According to CB Richard Ellis, commercial property values fell by 6.7 per cent in the third quarter of 2008, compared to a three per cent fall in the second quarter.

In addition, September's fall of 2.8 per cent was the largest monthly decrease of last year.