Commercial property investments saw a record fall in the final quarter of 2007, according to figures released by the IPD.

Its UK Quarterly Property Index revealed an 8.7% fall as investors looked to reduce their exposure to the sector in the wake of the credit crunch.

Many funds have introduced delays in repaying investors due to the difficulties that can occur when looking to sell commercial properties.

The overall return on property investments in 2007 was the worst on record since 1990, the IPD added.

The news is likely to increase the feeling that the UK is heading for a recession.