All UK commercial property values fell by a record 14.4% in the fourth quarter of last year, according to the Investment Property Databank’s (IPD) quarterly property index.

The drop meant that property measured by the IPD's quarterly index dropped in value by 26.4% over 2008 and by 34.3% since the start of the re-pricing cycle in July 2007.

Malcolm Frodsham, IPD Research Director said: ‘The last 12 months has set a number of unwanted records in real estate returns with the worst ever year capping the worst ever month and worst ever quarter in IPD history.

‘Such has been the severity of the falls in values that on a pure comparison basis the UK market now looks attractively priced, whether this matters or not to investors depends on an easing in the financial situation.’

Total returns fell by 13% over the last quarter and by 22.1% over the full year.

Retail saw thelargest capital drop for the quarter and the year at 15.1% and 27% respectively.

Offices declined by 14.1% in the fourth quarter and by 26.5% over the year.

The industrial sector saw values drop by 13.7% in the fourth quarter and by 25.7% for the whole year.

All property rental values fell by 1.4% over the quarter and 1.1% over the 2008 with the exception of London’s City and West End markets which declined by 3.9% and 8.4% over the fourth quarter.