King Sturge has warned that property prices could fall by another 10% before bottoming out in the second quarter this year.
In its predictions for 2008 the company said there was a 50% chance the commercial property market would drop a further 10% before investors came back into the market.
However, the company is predicting that any losses in the first half of the year should be made up in the second six month period.
King Sturge head of research Angus McIntosh told the Telegraph: 'Commercial property prices will continue to fall in the current quarter. However, we think that prices will bottom out by Easter.'
In its predictions for 2008 the company warned there could be oversupply in the retail property market.
On the residential market King Sturge remained upbeat, predicting the market would hold up in 2008, rising around 3%.