Deutsche Bank AG: ‘Bust followed by boom’ for UK offices

Central London’s best offices may lose as much as 30% of their value by the end of next year before the UK bounces back to beat continental Europe for the rest of the decade, according to Deutsche Bank AG.

A decline in UK commercial property values will accelerate in 2017, with parts of the London centre seeing a much sharper drop than the average of 10% to 15%, the German bank’s asset management unit said in a report yesterday.

Simon Wallace, head of alternative asset research at the unit, said the fall could reach 30%.