Dip in commercial property values 'is looming'

Dip in commercial property values 'is looming'

Commercial property in the UK is to offer little valuation growth in the next five years, it is claimed.

A leading property investment analyst has claimed that a dip in commercial property values is looming.

Speaking to the Daily Telegraph, property analyst for JP Cazenove Harm Meijer, said that the value of commercial development assets has peaked following the post-recession recovery.

Valuation growth over the next five years will not offer much to an investor, Mr Meijer adds.

However, he concluded that once this price dip begins to take hold, it will create good buying opportunities for property investment firms.

The analyst's "top pick" for those looking to buy shares in a property investment firm is Land Securities, which he claims benefits from a strong balance sheet and an asset base of extremely high quality.

Land Securities recently announced the sale of a major commercial development asset in east London.

The sale of Stratford shopping centre, located near the main site of the 2012 Olympics, was agreed for a fee of £91 million.

Posted by Hadji SinghADNFCR-2843-ID-800049117-ADNFCR
Thursday, 02 September 2010 00:00
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