Commercial property prices globally will continue to fall this year and will not bounce back before next year, according to a top real estate investment report.

The DTZ Money into Property report 2009 was launched at the Ritz-Carlton Bahrain Hotel and Spa yesterday (June22).

Global investment volumes were down by 85 per cent from their peak in the third quarter of 2007 to the present day according to the report which covers 38 countries worldwide and provides a detailed review of the trends and performance of the global property investment markets over the last 12 months.

The report predicts there will be further pain in commercial property prices, as they continue to slide globally throughout this year and will only stabilise next year.

The prime London City office market is the only key office market, globally, to offer investors attractive returns at current values.

DTZ's global analysis has identified markets at different positions in relation to their fair value.

Looking specifically at the prime office market, DTZ believes that although currently not at fair value, London West-End, Madrid, Paris and Sydney will reach fair value this year.

Meanwhile, Frankfurt, New York, Shanghai and Tokyo will not represent attractive investment destinations until next year.

DTZ further forecasts that, globally, total office returns will be around minus 20 per cent this year and be zero or slightly positive next year, reaching to above 10 per cent from 2011 onwards.

While yields are beginning to stabilise in some of the markets, the softening of the economy will place rents under pressures across all markets covered by DTZ.

'Money into Property is the longest running annual report of its kind,' said DTZ Middle East Operations managing director Robin Williamson.

'First published in 1975, it provides a detailed breakdown of the property investment markets globally looking at the different sources of capital, debt and investor appetite.

'Not surprisingly in line with the global recession Money Into Property 2009 has some dramatic findings, yet still identifies where opportunities exist.'

DTZ opened its first Middle East operation in 1975.

Today, DTZ has a presence in six GCC locations, and is currently undergoing aggressive expansion across the region to match a growing high-profile client list.

Each DTZ office provides a full range of real estate services staffed by qualified expatriates and experienced nationals. – TradeArabia News Service