Commercial property values fall

Office design news from Morgan Lovell

Published on 19-11-2008

Commercial property values fell by 4.3 per cent last month, according to new figures released today (November 19th).

Builder & Engineer Online has reported that the Investment Property Databank's index has seen its largest monthly fall since it was started 22 years ago.

Furthermore, the report showed that total returns dropped by 3.8 per cent and across all sectors rental value growth fell by a further 0.3 per cent - a worse result than the 0.2 per cent drop witnessed in September.

Total returns in the office sector also fared badly in October, with monthly capital value falls of 4.3 per cent - the steepest monthly change in almost five years.

Meanwhile, LDP Business recently reported that UK developer Hammerson has announced that it is to put on hold all of its current developments until at least the end of 2009.

It stated that falling demand in London and overseas has led the company to focus on design aspects until the property market picks back up again.