There are distinct similarities between current commercial property market conditions and those which preceded the 1994 slump, it is claimed.
The UK commercial
property investment market could be on course for 1990s-style crash, it has been claimed.
Conditions in the UK commercial property sector currently resemble those seen prior to the 1994 crash, according to an article in City Wire.
Commercial development investors have witnessed a 12 per cent rise in values, but many are now questioning the market's sustainability over the rest of the year.
At the end of May this year property yields were high and rents subdued, but the slow rate of economic growth is holding back rental rises.
"The underlying fundamentals suggest that while over the next 12 months the market will not mirror the events of two decades ago exactly, the two scenarios could certainly share a resemblance," the article states.
Recently the UK commercial property investment market was described as "patchy" by King Sturge, as growth in London is not being reflected in other parts of the country.
Posted by Lisa Fear.