King Sturge forecasts a dire few years for property with property values set to plummet to new lows not even seen in 1990-1992.
A predicted drop in value of more than 45% from 2007 to 2010 will exceed the drop in the recession of 1990-92, when they fell by only 40% the firm said in its Property Predictions 2009..
It predicts offices will suffer worst by 50%, retail property by 40% and industrials by 35%.
It said that average UK commercial property values fell by more than 25% in 2008 and it predicts they may fall another 15% this year.
But the firm predicts a two-tier market will emerge with prime property seeing a smaller fall in value compared with secondary and tertiary un-let property that it predicts will continue to fall in value by more than 20% until 2010.
In its gloomy estimations King Sturge forecast the office sector will see rental values falling in 2009 on average by 15% in offices.
For retail it predicts retail rents will fall by 6% in 2009 with average rents in central London worst hit falling by more than 6.5%.
For the industrial market it suggests rents will fall in 2009 on average by 6% or worse – the payment of empty rates may force rents lower.
For the residential sector it predicts house prices will continue to fall in value by -15% to 20%. From top in 2007 to bottom of the cycle in 2011, values will have fallen by over 30%, the worst housing price crash since 1945 it suggests.