Returns from commercial property fell to record lows last quarter, making 2008 the worst year for property investment after a freefall in values that took the market by surprise.

Total returns across all property classes in the last quarter of 2008 were -12.8%, Jones Lang LaSalle, which dragged returns for the full year down by more than a fifth, at -21.2%.

Jones Lang LaSalle said the performance was driven by a combination of a severe price correction and the slowdown in rental growth, adding further evidence of the extent of the downturn in the UK market to date.

Financial Times