According to the latest IPD UK Monthly Property Index, UK commercial property prices have fallen by 0.5% last month.This is the most significant decline in values registered since November 2011.
Over the past 7 months, commercial property prices have decreased 1.6% and are now 35.3% lower than in June 2007.
In the opinion of experts, such sharp decline is due to reduced confidence in the property sector.
Commenting on the findings, Phil Tily, managing director of IPD UK, said: “However, it’s not all doom and gloom in the UK market. Despite the uncertainty caused by wider economic factors, or perhaps because of it, returns in London remain resilient. Values in the City and West End office markets grew by 0.9%, and 0.3% respectively, and in Central London retails by 0.9%.”
He highlighted that good performance of London property is cheering.
The detailed report on UK commercial property prices (IPD UK Monthly Property Index for May 2012) is available on the official website of IPD UK.