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'20-year high' gap between prime and secondary UK commercial property

7th May 2012
The gap between prime and secondary commercial property values in the UK is now at its widest since the early 1990s, according to Investment Property Databank’s (IPD) latest report.

A new study of the values of UK commercial property revealed a decline of 0.7 percent in Q1 2012, the second consecutive quarter of decline.

According to IPD, values are now 31 percent below 2007 levels, thus making it harder than ever to refinance five-year loans in negative equity that are maturing at this time.

The distinct lack of financial liquidity being afforded to secondary commercial property by the banks is one of the main reasons for the widening gap, according to industry experts.

This is also expected to have a knock-on effect on future development with investors unlikely to want to get involved with properties that are freefalling in value.

Read the full story Gap between prime and secondary commercial property reaches '20-year high' on today.
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