New data shows commercial property decline finally slowing

New data shows commercial property decline finally slowing




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Perhaps economists are becoming more determined to see them, but those infamous green shoots seem to be sprouting up all over the place as the second quarter of the year gets underway and the economic downturn eases off a little. 

The latest news from the Investment Property Databank (IPD) has shown that commercial property capital values have not fallen as far during the first quarter of 2009 as previously expected.

 

The IPD UK Quarterly Property Index measures property investment market movements in values and returns on a quarterly basis, producing information on the performance of a databank of over £80 billion.

 

The index recorded that since the record drop of 14.3% in commercial property capital values of the final quarter of 2008; the decline has slowed significantly, falling by a much smaller 8.7%.

 

Low interest rates have been attributed to the easing rate of decline; with the Royal Institute of Chartered Surveyors (Rics) saying the net balances for enquiries, demands and confidence are the most positive for a year.

 

In a report, Rics concluded: “The improvement in the market offers some hope that aggressive cuts in monetary policy have provided some limited support for the commercial markets.”

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