The UK commercial property market sees yield compressions fall at their fastest annual rate in 16 years.
The recovery of the UK commercial property market after the recession "continues to soften", according to the Investment Property Databank (IPD).
Latest figures produced by the group indicate that the speed of the yield compression in the UK
property investment market is now at its fastest annual rate for 16 years.
Equivalent yields have fallen from 9.3 per cent in June 2009 to a current level of 7.6 per cent - a fall not seen since the last property recession in mid-1994, IPD claims.
In addition, the government's revised and reduced prediction for economic growth will certainly have an impact on
commercial development values in the UK, according to IPD head of UK client services Malcolm Hunt.
"Historically, property markets suffer when economies falter - affecting occupier markets and rental growth which, in turn, influence property values," he said.
Earlier this month, Standard Life Investments' investment director Andrew Jackson claimed that commercial property values would fall by up to five per cent this year as the UK entered a "double-dip" recession.
Posted by Allan Flowers.
Latest News 
