UK commercial property falls looks set to beat landmark 1990s crash, IPD Index shows (UK)

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

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