UK commercial property values down

London: UK commercial property values dropped by a further 4.6 per cent in October, extending the market's price correction to 27.4 per cent from its summer 2007 peak, data from property consultant CB Richard Ellis showed.

The CB Richard Ellis Monthly Index for October showed average commercial property prices have sunk 17.6 per cent in the year to date, as valuers adjust prices in line with Britain's depressing economic outlook.

CB Richard Ellis said the average all property one-month total return - rental income and capital growth combined - fell to minus 4.1 per cent in October.

All property rents declined 0.5 per cent over the month, with further contractions in financial and business services activity pushing Central London office rents down by 2.5 per cent.

Reflecting last month's sharp downturn in consumer spending, retail property was the worst-performing in October, generating a minus 4.5 per cent one-month total return compared with minus 4 per cent for offices and minus 3.1 per cent for industrial real estate.