DTZ’S Money into Property report predicts that further pain in commercial property prices is yet to come, as prices will continue to slide globally through this year and will only stabilise during 2010.
According to the report, the prime London City office market is the only key office market globally to offer investors attractive returns at current values.
DTZ forecasts that globally, total office returns will be around -20% in 2009 and be zero or slightly positive next year, notching up to above 10% from 2011 onwards.
While yields are beginning to stabilise in some areas, the softening of the economy will place rents under pressures across all markets.
Tony McGough, of DTZ, said: “While we will start to see value returning to the market, funding remains a concern, and may become a bottleneck for the recovery of activity in the commercial property markets worldwide.”
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