Europe's Property Prices Going Down

LONDON -- Commercial property prices on the European mainland are adjusting downward in the wake of a global credit crunch but are unlikely to fall by as much as in Britain, a senior executive of CB Richard Ellis said Monday.

"We are seeing elements of repricing, but the repricing is not as severe as in the U.K. because it does not need to be as severe to get back to equilibrium," said Mike Strong, president of CB Richard Ellis in Europe, Middle East and Africa, or EMEA.

Strong said British commercial property values -- down an average of 18 percent since last summer, according to Investment Property Databank -- had started from a higher starting point after a vintage bull run.

"On the up none of the [other] European markets went over the tipping point," he said. "One or two of them got close, but none of them" reached the point of becoming unaffordable.