Office market at rock bottom - commercial mortgages

26 May 2009

The downturn in the UK office market is coming to an end, according to a commercial property expert.

A recent report by CB Richard Ellis found that commercial property values have declined by 42.7 per cent since the market peaked in 2007.

It also revealed that values fell by 2.1 per cent during April 2009, but Dan Hodges of property consultant GVA Grimley said further extensive declines are unlikely.

He suggested the office sector has now hit rock bottom, though the recovery is yet to begin.

Those planning to take out commercial mortgages in order to take advantage of the lower property values still have plenty of time to act, as any recovery is likely to be slow.

Mr Hodges said: "It's more of the same, I can't see anything major happening for the next 12 or 15 months."

The expert's comments came after figures compiled by the Royal Institution of Chartered Surveyors indicated that the rate of decline in commercial property transactions slowed in the first quarter of 2009.

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