Categorized | International

UK Commercial Property Forecast Looks Bleak

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Real estate analysts are predicting that the commercial real estate market in the United Kingdom will experience a moderate decline in the upcoming year. The general consensus among the analysts is that the market will fall by roughly five percent.

The looming debt crisis and fears of another recession are taking their toll on businesses, as confidence has fallen to new lows. The majority of businesses have ceased hiring and investing, which serves as an indication as to failing health of the market.

With the economic outlook in complete disarray, many businesses have opted to avoid any and all risks at all cost, thus creating a market where there is little room for growth. Analysts believe there is a fifty percent chance that the United Kingdom economy slides into another deep recession. As such, most business owners simply do not want to take the risk of investing in property that could freefall in value over the next year.

The market that is expected to struggle the most in the upcoming year is the retail sector. Heightening debt concerns and recession fears often cause consumers to spend less and that is bad news for retail businesses. The industrial sector will likely be the best performing area of commercial real estate. However, even the industrial sector is expected to experience a loss.

The commercial real estate market has had a very difficult time recovering from the last property crash in 2007. Prices are still roughly thirty percent lower than they were during the last real estate peak. With the most recent fears of another decline, it is unlikely that the commercial property market will experience a real recovery any time soon.

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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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