UK property adviser King Sturge has warned that commercial capital values in the UK could fall a further 7% or more in 2008 before stabilising in the second quarter of the year. In its 'UK Property Predictions for 2008' report the real estate consultant said there is a 50% chance that the property market will drop by over 20% in the country from its peak in mid 2007 to mid 2008. 'The faster capital values fall the quicker the market will return to normal', King Sturge said.
UK property adviser King Sturge has warned that commercial capital values in the UK could fall a further 7% or more in 2008 before stabilising in the second quarter of the year. In its 'UK Property Predictions for 2008' report the real estate consultant said there is a 50% chance that the property market will drop by over 20% in the country from its peak in mid 2007 to mid 2008. 'The faster capital values fall the quicker the market will return to normal', King Sturge said.
King Sturge said the retail sector and house prices will go through their toughest year since 1991. But wide spread house price falls are not expected, as the firm predicts an average of 3% in 2008. The commercial property market will struggle to produce a positive total return as capital values are expected fall in all sectors, with the retail segment possibly incurring in oversupply.
Investment transaction levels are expected to remain low through early 2008, with only a gradual recovery in the rest of the year.
