Property transactions 'to rise'

The amount of commercial property transactions in the UK could increase in the near future, according to an expert.

Oliver Gilmartin, senior economist of the Royal Institution of Chartered Surveyors (RICS), made the comment after new figures from the organisation found that capital values in the sector are set to fall by a further 25 per cent in the next two years.

It was found that a 16 per cent decline is expected in 2009, with a further drop of ten per cent expected 12 months later.

Mr Gilmartin said: "We are only half way through the price correction in the commercial property market with values set to fall through 2009 and 2010 as rental declines gather pace.

"Transaction activity is set to rise, however, as more sellers become willing to accept lower bid prices."

Previous research by RICS found that the credit crunch is continuing to lower confidence in the UK sector.