The momentum has gone from the commercial property market, the latest figures from Investment Property Databank claim.
Commercial property prices rose by 0.8 per cent in April, yet this indicates that the momentum in the market is disappearing, a market analysis firm claims.
Figures from the Investment Property Databank (IPD) showed that last month produced this slowest capital growth rate in
commercial development assets since positive growth returned in August 2009.
In addition, estimated rental levels for
property investment firms have fallen by 10.8 per since May 2008.
This means that rental levels have fallen every month for two years, but the IPD claims this is typical for a post-recession period.
"The rate of rental decline has broadly been in line with the experience of the early 1990s recession which, after two years, had seen a 13.2 percent decline in rental levels, although falls continued for more than three-and-a-half years," the firm stated in its report.
Real estate agent CB Richard Ellis agreed earlier this month that the commercial property market is slowing down, noting that the all property return for investment firms fell by one per cent.
Posted by Pete White.
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