The value of Great Portland Estates Plc’s property portfolio dropped by 4% in in the three months leading up to June, as reported by the company on Tuesday.
“Conditions in London’s property investment markets remain difficult” the company said in a statement.
The company continued, “We expect the constrained availability of credit to exert further downward pressure on property values, particularly those with limited rental growth prospects.”
This economic downturn has led Great Portland Estates Plc to put an office space development near London’s Blackfriars business district on hold until September at least, said Chief Executive Toby Courtauld.
As the commercial property climate continues to worsen and credit becomes more difficult to access, investment in commercial property such as office space and shop areas will continue to fall, the company note.