UK commercial property returns for 2008 look set to surpass the landmark losses recorded in 1990, on a real returns basis, with All Property total returns now at -18.2% over the 11 months to November 2008, compared to an inflation-adjusted return of -16.2% almost 18 years ago on the UK Annual Index. The largest ever annual total returns loss for UK commercial property, on a real return basis, was -29.4% recorded back in 1974.
For the second month in a row total returns and capital values for UK commercial property have broken records for the largest monthly falls with returns of -5.1% and - 5.7% respectively, according to the November IPD UK Monthly Index. Over the yearto- date All Property capital values have fallen by -22.6%, and over the last 16 months by -31.5%. This compares to capital value falls of -27.0% between November 1989 and May 1992.
The combined drivers of capital movement