Optimists betting on a recovery of the UK commercial real estate sector next year will likely be disappointed, according to the findings of a quarterly report by the Investment Property Forum (IPF). Key industry analysts, the IPF found, are less hopeful than they were three months ago that UK property returns will bounce back in 2009. The consensus is now that a recovery will only materialise in 2010.
Optimists betting on a recovery of the UK commercial real estate sector next year will likely be disappointed, according to the findings of a quarterly report by the Investment Property Forum (IPF). Key industry analysts, the IPF found, are less hopeful than they were three months ago that UK property returns will bounce back in 2009. The consensus is now that a recovery will only materialise in 2010.
The IPF quarterly report is based on a survey of forecasts made by fund managers, consultants and analysts. 'The 2010 forecasts show improving total returns on the back of stronger capital value growth and a limited return to positive rental value growth,' the IPF said.
The survey indicates capital values are expected to dip by 1% in 2009, coming on top of a 10% decline in 2008. Rental growth is also expected to be negative. Offices will be the worst performing segment next year, according to the IPF report.
