Commercial Finance Specialists

The value of assets in the property investment market will continue to fall for some time, according to an expert.

The value of UK commercial property assets are set to level out in the coming months, it has been claimed.

New research from agent CB Richard Ellis claims that the growth rate in commercial development values has fallen to 0.6 per cent in June.

According to Capital Economics property economist Kelvin Davidson, this fall in the property investment market is set to continue until values level off, where they will then remain for some time.

Investors are now beginning to question whether they can afford to keep paying ever-higher prices.

Many also have concerns about their income streams, due to uncertainty over the possibility of a double-dip recession and the government's fiscal policy, claims Mr Davidson.

"Once you take that into account, then property certainly doesn't look as good value as it did 12 months ago," said Mr Davidson.

He concluded by saying that commercial development values will stay level for some time because bond yields remain low and the Conservative-Liberal Democrat coalition will not be implementing monetary policy seen in previous recessions.

Posted by Allan Flowers.