LONDON, Nov 14 (Reuters) - UK commercial property prices dived by a record 4.3 percent in October, taking the market's total decline from a June 2007 peak to more than 28 percent, new figures showed on Friday.
The Investment Property Databank (IPD) UK Monthly Index showed prices for UK shops, offices and industrial real estate tumbled by the largest margin on a month-by-month basis in IPD's 22-year history in October, as Britain's economy edged closer to recession.
"The pace of capital value falls over October fully confirms market expectations and it remains to be seen, from this point, whether values have now fallen to a point where equity investors are prepared to step back into the market in any force," said Malcolm Frodsham, director of IPD.
The Index showed All Property total returns -- comprising rental income and capital growth -- had fallen to minus 3.8 percent, fractionally lower than the minus 3.7 percent monthly returns recorded last December, serving to emphasise that the UK commercial real estate market correction had entered an onerous "double dip" phase.
The retail property sector suffered the biggest monthly falls in capital values, falling a record 4.7 percent. In the Office sector, total returns were minus 3.7 percent, again driven by steep monthly capital value falls of minus 4.3 percent.
IPD said the industry was braced for further falls in real estate values before the end of the year, but it hoped the speed of the correction would lead to a quicker market recovery. (Reporting by Sinead Cruise; Editing by Andrew Macdonald) (See www.reutersrealestate.com for the global service for real estate professionals from Reuters)