A leading property investment firms claims capital values for commercial properties have peaked and will now begin to fall.
The UK commercial property market is about to enter into an unprecedented triple dip, it has been claimed.
According to a senior figure at
property investment firm Standard Life Investments (SLI), the value of
commercial development assets is expected to fall by five per cent this year, City Wire reports.
After property values fell by 45 per cent and then bounced back by 12 to 13 per cent, capital values can go no higher, according to SLI's investment director Andrew Jackson.
"If anything, we think there might be a bit of weakness in the second half of this year so what we have been advising clients is if they are considering upping their allocation to property, hold off in the UK for now," he told the news provider.
However, he warned against selling commercial property in light of these price falls, as the process itself can be expensive, exacerbating the loss.
These predictions seem to be contrary to those made by independent financial advisors in the latest Reita survey, as they predicted commercial property values would rise by 14 per cent this year.
Posted by Allan Flowers
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