Commercial property price drop 'reaching end' - commercial mortgages

21 May 2009

The UK commercial property market is getting closer to the bottom in terms of prices, according to one expert.

Christopher Bell, managing director of the European region at Knight Frank, said that people with commercial mortgages and others involved in the sector "are beginning to feel more comfortable that tomorrow is not going to be demonstrably cheaper than today".

Looking ahead to the remainder of 2009, Mr Bell suggested that there is still "a little bit more to go" in terms of falling prices, but the rate of decline will not be anything like it has been over the last 12 months.

"It is closer to bottoming out certainly and therefore, by definition, closer to turning up," he explained.

His comments come after the Investment Property Databank reported this month that UK commercial property capital values dropped 8.7 per cent in the first three months of 2009.

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