52% fall in commercial property deals

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by Lin Freestone

Investors are in a cautious mood, according to research carried out by Cushman & Wakefield.

The property adviser has reported that the volume of property deals in the UK fell by 52% in the first quarter of the year, compared with the same three months of 2007.

There were, however, indications that the UK market is steadying. Activity in the first three months of 2008 was not dissimilar to that of the last quarter of 2007.

Checks and precautions being carried out by lending banks means that the process is slowing down, with deals taking longer and sometimes not completing.

Cushman & Wakefield warns of further difficulties on the horizon, even though it expects the volume of investment deals to pick up as the year progresses.

The firm’s latest report confirms what other industry analysts have already discovered, that investors are sitting on their hands until there is greater confidence in the state of the market.