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Commercial Property News
Commercial property experts forecast no capital growth for next 5 years
Hopes of a recovery in commercial property values this year and next have been dashed by the latest Q3 survey by the Investment Property Forum (IPF).The five year view shows negative capital value growth over the period and sub-inflation returns from the sector.
Less pessimistic was the expert prognosis for 2010, where total return forecasts slipped only marginally to 8%.
"This is clearly where hope of recovery lies, both in the commercial property markets and the wider economy," IPF said in a note.
The Q3 survey ,total return forecasts for 2008 have had their sharpest downward revision yet, largely driven by substantial reduction in the capital value growth
forecasts.
The 2009 forecasts have continued to be revised downwards and whilst the total return remains positive it is not by much.
The 2010 forecasts remain largely unchanged. All the total return forecasts for 2010 remain positive but the consensus has moved down from 8.2% to 8% as a result of lower capital value growth forecasts.
The 30 contributors to this quarter’s forecasts at the All Property level include 12 property advisors, 14 fund managers and four equity brokers.
Less pessimistic was the expert prognosis for 2010, where total return forecasts slipped only marginally to 8%.
"This is clearly where hope of recovery lies, both in the commercial property markets and the wider economy," IPF said in a note.
The Q3 survey ,total return forecasts for 2008 have had their sharpest downward revision yet, largely driven by substantial reduction in the capital value growth
forecasts.
The 2009 forecasts have continued to be revised downwards and whilst the total return remains positive it is not by much.
The 2010 forecasts remain largely unchanged. All the total return forecasts for 2010 remain positive but the consensus has moved down from 8.2% to 8% as a result of lower capital value growth forecasts.
The 30 contributors to this quarter’s forecasts at the All Property level include 12 property advisors, 14 fund managers and four equity brokers.
Fri, 5th Sep 2008