Sunday, June 28, 2009

Commercial property prices will continue to decline globally

Commercial property prices will continue to plunge this year in the global market, and will not bounce back until next year, according to the DTZ Money into Property report 2009.

The report, which was launched yesterday at the Ritz-Carlton Bahrain hotel and Spa last night, revealed that the number of global investments have fallen by 85 percent from their peak during the third quarter of 2007, till the present day.

The report, which includes 38 countries worldwide, offers detailed review about the trends and performances of the global property investment markets during the past year.

According to the report, commercial property prices will fall once more, as they continue to decline globally throughout this year, and will stabilize only next year. The London City office market will be the only key office market, globally, to offer investors attractive returns at current values.

DTZ also predicts that globally, total office returns will be about minus 20 percent this year, and will be zero or slightly positive next year, going to above 10 percent from 2011 onwards.

Being first published in 1975, Money into Property is the longest running annual report of its kind, providing detailed breakdown of the property investment markets globally, considering the different sources of capital, debt and investor interest.

Having already made its presence in six GCC countries, DTZ is currently undergoing aggressive expansion, across the region, offering complete range of real estate services, staffed with qualified expatriates and experienced nationals.

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