Retail rents to ‘fall until after 2011’

Brussels: Most European retail property markets are likely to suffer from falling rents until after 2011, as a collapse in consumer demand and corporate debt issues causes severe occupier fallout, a report said yesterday.

Markets such as Ireland and Hungary could see the worst pull-back after rapid growth before the global financial crisis, while capital values in Britain may dip again next year after a rebound in July, property consultants King Sturge said.

“UK capital values have gone up quite rapidly but that’s not going to continue indefinitely, certainly when rents aren’t heading in the same direction,” Stephen Springham, King Sturge head of retail said.