UK Commercial Property Values Fall in November 2011

On Wednesday, December 14th, Investment Property Databank Ltd published a report on its website, according to which the value of commercial property in Great Britain has come down for the first time since June 2009.

Company experts believe that the reason behind the decrease in prices is the debt crisis as well as the possible recession in the UK.

The value of offices and warehouses fell only slightly, by 0.02% on a month-to-month basis. However, the value of retail properties experienced a more dramatic fall of 0.1%.

The only city, where the values remained the same as in October or even experienced a slight increase, was London.

Commenting on the findings of Investment Property Databank Ltd, Michael Marx of Development Securities Plc, said that commercial real estate prices in the UK might further fall by 2.5-5% in the first 6 months of 2012.

In his turn, Malcolm Hunt, IPD’s U.K. and Ireland client services director, said: “Deep uncertainty about the potential of the U.K. to avoid recession next year is now finding its way into property values.”

The full version of the report is available on the official website of Investment Property Databank Ltd.