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29/01/2009
Commercial property prices 'could fall a further 25%' |
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A leading credit rating agency has forecast that commercial property prices in the UK may slip by a quarter this year.
Moody's Investor Service also warned that prices may have fallen by up to 45 per cent from the height of summer 2007, Wealth-Bulletin.com reports.
In its report on commercial mortgage-backed bonds (CMBS), the agency said that this fall outstrips the 20 per cent dip it is predicting for France and 15 per cent drop for Germany.
Oliver Schmitt, Moody's CMBS analyst, said: "In terms of value decline, amongst the most affected property sectors relevant for securitisation transactions will be London office, retail, hotels and leisure."
He added that Moody's expects to see a further plunge in rental values in London City and Canary Wharf in particular.
A spokesperson the Forum of Private Business has claimed that abolishing of empty property rates relief has had a large effect on the market.
"It's forced landlords and businesses that own properties to get rid of them," he said. |
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