Shares of British real estate companies underwent the maximum fall in 20 years

In the second quarter of this year, the quotes of British real estate companies underwent the maximum fall over 20 years, the tenantor.ru reports. This is due to the fact that property is getting cheaper, and the rent of new office buildings for the first time in more than four years goes down. The FTSE 350 real estate index, including shares of 23 companies, fell by 24% in three months to the lowest value from August 2004. The worst of all things were with Quintain Estates and Development, whose quotes decreased by 58%.

“At present, the landlord looks helpless,” said the London analyst at Jpmorgan Chase & Co. Harm Meyer. However, the worst is still ahead. ”

According to Investment Property Databank, British stores, offices and warehouses lost 18% of their value since 11 months ago the market reached a peak. Funding for purchases of property has become more expensive and inaccessible. The UK had no such bad indicators from the first quarter of 1987. Then the largest defense courses in world history took place within one day, which became called Black Monday, notes? Bloomberg?.

“In fact, real estate becomes very cheap,” said Patrick Sumner, who is responsible for the real estate market in Henderson Global Investors.? The problem is that everyone is quite pessimistic. ”

In May, for the first time since December 2003, a drop in a radio for new tenants was recorded. This is evidenced by the results of the CB Richard Ellis Group. Most of all, the rent has fallen in the main financial center of London, known as City. During the month, the rent there decreased by 1.3%.