Opinions on
commercial property
investment have changed recently, according to a new
report.
New Star claims that since the summer there has been an
adverse shift in sentiment towards the market, which
has reduced the number of transactions taking place within the
sector.
Consequently, liquidity within the market is limited and valuing
commercial
property has become increasingly difficult, the
company noted.
In recent days sentiment has deteriorated sharply, partly as
a result of the publicity given to redemptions from open-ended
commercial property
funds, the company explained.
These developments have resulted in additional redemptions and led
to concern about the level of liquidity found in such funds, it
added.
According to Jones Lang LaSalle, commercial property transactions
have fallen recently, with the firm predicting that there will be a
24 per cent decrease in total
UK investment in 2007, reports Thomson Financial.
Overall, the company estimated that total investment in commercial
property would reach £48 billion this year.
