SLI foresees no rebound for UK commercial property until 2010

Report predicts falling prices in UK offset by Nordic, emerging Europe and Asian growth

Standard Life Investments is expecting commercial property prices in the UK to fall this year against a backdrop of weak economic forecasts and disfunctional credit markets. In its global outlook for Q3, SLI said it is expecting total returns to be poor in both 2008 and 2009, returning to healthier single-digit performance thereafter. Managing director Alex Watt said: "Property market fundamentals continue to diverge but a common global theme is the positive demand and supply balance. Liquidity and credit issues remain a problem for real estate markets in many countries however." The ...