Property Snapshot July 2008

Published: June 2008
Source/Company: Colliers CRE

Abstract:
Business and consumer confidence continues to plummet, the employment market is weakening and inflation is keeping the MPC’s hands firmly tied.

With the ECB raising European interest rates last week, much has been made of the potential for similar in the UK. For commercial property markets, the ‘double-dip’ in capital values now appears to be underway with indices now showing increasingly negative capital growth.

We are hopeful that this will help to improve the low transaction volumes the market is currently experiencing.

However, with the purse strings being held firmly by the banks, it will be some months before the recovery begins in earnest. In the meantime, we shall continue to closely monitor the economy and the property market for any light at the end of the tunnel.