UK commercial property prices down 1.5%

 

The two-year British commercial property correction showed fresh signs of easing in May with average values falling by 1.5 per cent last month, compared with a 2.1 per cent drop in April, data showed today.

The latest CB Richard Ellis (CBRE) Monthly Index showed the pace of repricing slowed again in May, continuing a trend of shrinking month-on-month price falls seen since end-November.

The May fall means average commercial property is now 12.4 per cent cheaper to buy today than at end-December and extends the market's total fall since a June 2007 peak to 43.6 per cent.

"This does not necessarily mark a turning point in the market yet, but suggests investor sentiment is becoming more favourable," David Wylie, head of economics and forecasting at CBRE, said in a statement.

Despite early signs of stablisation in pricing, CBRE said Britain's property investment market remained sombre, with little over £5.2 billion worth of property exchanged in the year to date.

All Property rental values fell by 1.1 per cent in May, a small improvement on April's fall of 1.3 per cent, the index showed.

Reuters