Savills predicts that Q2 2020 commercial property investment volume is likely to be around £2.75bn, Total UK commercial property investment volume in Q2 2020 is likely to plummet by 72% compared with Q2 last year, making it the lowest quarter for investment on record.

A report from Savills predicts that Q2 2020 commercial property investment volume is likely to be around £2.75bn, 35% lower than the previous lowest quarter on record in Q1 2009 and merely a fraction of the Q1 2020 £12.7bn investment.

The report also reveals that capital value growth plunged in March by -2.4% and continued to fall in April, by -1.8%, and May, by -1.2%. The year-on-year fall in 2020 is currently 7.4%.

James Gulliford, joint head of UK investment at Savills, says: “Looking at capital values on an annual basis, the numbers by the end of Q3 2020 will begin to show a levelling out. March brought the third-largest monthly fall for 10 years but encouragingly April and May data show less severe drops, and we’re likely to see month-on-month falls recede back to -0.4% per month, as seen in recent recessionary periods.

“In terms of quarterly investment volumes, it’s no surprise that Q2, and by implication the first half of 2020, are well down on last year, but again there are some encouraging signs in the market, and we hope that the traditionally quiet summer period will see some of the suppressed demand for UK property begin to come through.”