Commercial asset values lost during the recession will take around 15 years to fully recover, according to one consultancy.
The financial loss suffered by
property investment firms on their
commercial development assets during the credit crunch will take 15 years to recover, it is claimed.
According to the latest data from BNP Paribas Real Estate, peak commercial property values seen in 2006 and 2007 will not be reached again until 2025, the Financial Times reports.
Asset values in the short-term are expected to remain stagnant and take-up is expected to be low until 2012.
The exception will be prime central London properties, where supply shortages and corporate demand are already pushing commercial development values up, according to the real estate consultant.
"As a large proportion of the property debt banks hold is outside of prime central London, it is important to look at this and how it could and should influence the banks' strategies for dealing with their exposure over the next few years," BNP Paribas' head of research Keith Steventon told the Financial Times.
One of Britain's largest commercial development firms, British Land, recently announced it was moving away from properties in the City of London and focusing on the West End for commercial opportunities.
Posted by Allan Flowers.
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