UK commercial property values are expected to drop in 2023

UNITED KINGDOM: UK commercial property values and rents are expected to "fall off a cliff edge" in the first quarter of 2023, according to estate agents, who also warn that offices would suffer the most when prices decline. (Reported by news source)

In the first three months of the year, prices per square foot across the sector were predicted to fall by 2.9%, with offices decreasing by 3.1%, according to a study of more than 400 commercial agents.

The "decidedly negative" forecast would cause "values and rents to slide off a cliff edge," according to the research, which was put together by the London-based Robert Irving Burns. This would be the biggest quarterly decline in the previous five years of similar data.

According to the RIB report, offices are predicted to have the largest drops in sale prices, with over a third of respondents anticipating decreases of more than 5%.

In addition, the study forecast a 1.3% drop in rentals per square foot for the time period, with retail likely to face the worst with a 2.1% drop.