Commercial property values will continue to decline into 2009 as demand from businesses remains low, a majority of analysts and investors believe.

Of those industry professionals questioned as part of an online sector briefing, as many as three in four expressed their pessimism over the likely prospects of commercial property over the coming months.

Just over one fifth said that they expected total returns of less than minus 10% over the course of 2009, while six in 10 expect total returns for the remainder of 2008 to stand at below -5% .

Bill Hughes, managing director of insurer Legal & General's property funds, told a presentation prior to the study: "There is no room for optimism about (property) returns until 2010 at the earliest."

In addition, Aberdeen Asset Management supported its negative viewpoint by arguing that sellers in the commercial property sector are still being seen as being forced into making a sale due to the current market conditions, thereby encouraging potential buyers to look for discounts and pushing prices down.

According to the latest figures from Property Data, commercial property transactions over the three months to the end of June totalled just £5.13 billion, representing the lowest quarterly amount since 2001.