A fall in commercial property prices is now being predicted by 24 per cent of IFAs - a significantly increase since the start of the year.
The number of independent financial advisers (IFAs) who are expecting UK commercial property prices to fall has increased since the start of the year.
Research conducted by Reita has found that 24 per cent of IFAs are now expecting
commercial development asset values to decrease, compared to just six per cent who thought this way in January.
In addition, 73 per cent of survey respondents predicted back in January that prices were to rise, yet the number of IFAs who retain this positive outlook dropped to 49 per cent in July.
Reita chairman Patrick Sumner says uncertainty about public sector cuts is the main driver behind these findings.
"We are in the early stages of a slow economic and commercial property market recovery, in the course of which there will be the odd lurch, but shares are trading at the cheaper end of fair value and dividends are sustainable," he added.
BNP Paribas recently predicted that it will take up to 15 years for property investments to return to pre-recession levels.
Posted by Tess Nelson
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