Commercial property market update - commercial mortgages

10 June 2009

Ed Stansfield, property economist at Capital Economics, has issued an update on the commercial bricks and mortar market.

He claimed that the correction witnessed in prices "has come through very rapidly in London and particularly in terms of the City".

What this means to people with commercial mortgages is unclear, but with this in mind Mr Stansfield said that it is still difficult to say whether property in the City represents good value for money.

"A lot of these things depend on the individuals concerned and the individual's objectives and investment horizons," he explained. "The broad picture is probably one which most people would echo at the moment."

Last month, the Royal Institution of Chartered Surveyors reported that the pace of decline in global commercial property capital values increased during the first three months of 2009.

Meanwhile, the proportion of surveyors reporting a rise in rental prices - as opposed to a fall - stood at minus 66 per cent.

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