Credit Suisse UK Real Estate has predicted an improvement in the commercial market in Britain in the second half of 2008, with 'falling interest rates, a relaxing of the credit crunch and the sustainable fundamentals of real estate' resulting in a turnaround. The company's latest real estate update notes the market's sharp decline, which it expects to continue for the first half of 2008. Returns have fallen 8.5% over the past three months and the report notes a number of capital raisings for 'vulture' funds hoping to capitalise on potential distressed sales from retail funds as well as private property companies.
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