Waning investor interest will cause the price of UK commercial property to fall this year, it has been claimed.
Prices in the UK commercial property market are expected to fall in the next 12 months, according to one of the UK's biggest
property investment firms.
The head of Lloyds Banking Group's SWIP Property Trust says this has come about as investor enthusiasm for
commercial development assets is beginning to wane, Bloomberg Businessweek reports.
Gerry Ferguson told the publication: "We have reached the point where we are trying to take a step back from parts of the market where it has got ahead of itself. Capital growth is slowing down."
Mr Ferguson went on to say that the firm plans to buy around £200 million worth of commercial property this year, recouping around half of that amount through sales.
In the face of such tough market conditions, one commercial property expert has claimed that it is now up to the government to provide strong and clear leadership.
David Sayer of property investment consultants GVA Grimley wrote in the Liverpool Daily Post that government-backed schemes were needed to help private finance fill the gap in commercial development that would be created by public sector spending cuts.
Posted by Tess Nelson.
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