Commercial property values in December fall - commercial mortgages

11 January 2008

Commercial property values fell by 4.3 per cent in December, new research has stated.

In news that may interest those with commercial mortgages, the CB Richard Ellis (CBRE) found that the fall in values during the month had been slightly more than the 4.1 per cent November figure.

CBRE executive director Michael Brodtman said this could mean difficult times ahead.

However, he added: "The degree of shift that has occurred and the aggressiveness in the final quarter of 2007 may suggest that the initial projections of a large adjustment in 2008 may not be as severe as previously thought."

This prediction suggests that some of the pessimistic forecasts about the commercial property market may turn out to be wide of the mark.

Economic advisor Roger Bootle of Deloitte has said there are signs that the credit crunch is easing, although he believed a new interest rate cut was needed soon to help the UK bounce back from its effects, the Guardian reports.

Mr Bootle argued that if it did not, then a larger cut would be needed later on, possibly to as low as four per cent.