European commercial property values could be set for further declines, a survey has suggested.
New research has indicated that European commercial property
prices could be set to fall further over the remainder of the year, amid wider uncertainty about the regional economy.
According to a poll conducted by Hatfield Philips, nearly half of industry analysts questioned felt there is likely to be a return of commercial mortgage
-backed securities (CMBS) in 2012, with 25 per cent predicting the same next year.
While 45 per cent of participants tipped UK prices to decline further, 91 per cent were confident that property investment
will increase over the next five years - and one-third of those believed it will climb by more than 20 per cent.
"It is reassuring to see that many lenders and commercial property experts are expecting to see a return to the CMBS market," said Hatfield Philips managing director Clarence Dixon, insisting that the sector is at the "tail end" of its correction.
Royal Bank of Scotland revealed last week that it intends to continue reducing its exposure to commercial property, having reduced its assets from £50 billion at the end of 2010 to £46.9 billion in June.
Posted by Tony Wilbon