Categorized | International

Commercial Property Values in the United Kingdom Drop Again

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For the fourth straight month, commercial property values in the United Kingdom have fallen. The decline in property values in the month of February has many economists concerned that the country is falling into a recession for the second time in three years.

 

Retail properties in the United Kingdom experienced the largest decline, falling roughly four-tenths of a percentage point from one month earlier. Office and warehouse properties experienced a similar decline, dropping three-tenths of a percentage point month-over-month.

 

While London’s commercial market continues to perform well, the rest of the United Kingdom has struggled immensely. Demand in commercial real estate outside of London has weakened over the past year, and things are now looking up for the market as a whole.

 

With demand for commercial properties hitting new lows, unemployment rising in various influential sectors, and credit tightening across the board, the rest of the year may prove to be quite difficult for the UK. Economists had feared that the nation might fall into a double-dip recession, and the recent data indicates that their fears may be coming true.

 

The United Kingdom’s government has yet to address the current housing situation, though they will be left with no choice but to do so if the downward trend continues.

 

Economists have not yet set a particular time frame with respect to when the market might climb out of its current descent. The fact that they haven’t is likely due to uncertainty as to just how long a possible second recession may last.

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About Nancy Raven

Nancy is the main writer for the International section of the website. Sometimes she also helps Drew out on the Finance/Mortgage section as well.

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