From Financialnews.com: Investors in UK property have been in a tight squeeze since values started heading south 12 months ago. Along with falling capital values, they face declines in rental growth and banks pulling even further away from financing property deals.
The consensus among managers in the sector is that total returns from UK commercial property will remain negative until at least 2010. Investors confirm that demand for property has disappeared. Even German open-ended funds, which have figured as cheap buyers this year, have pulled away following the near collapse of Hypo Real Estate Group….. Full Article: Source