Commercial landlords are facing problems due to depreciation in property and decrease in rents. However, there is a possibility of increase in the rent costs.

A study was carried out in order to analyze the effect of the budget on the commercial property.

The budget was released on May 20.

The Director of Research for Colliers International, Alan McMahon, said that many Companies have revealed that their after-tax profits have suffered because of the reevaluation of building structures to zero. Moreover, there has been a rescheduling of tax accountability.

He revealed that the reduction in profit will be very prominent across the corporate sector.

McMahon added that the Government has given some examples of building, which can be constructed to survive for less than 50 years. These examples include horticulture and farm structures.

Experts have forecasted that the Consumer Price Index (CPI) will reach 5.2% in June 2011.

McMahon said that the impact on property due to the alterations in the budget have been highlighted in a negative manner. He is of the view that there are also some positive aspects to it.

He revealed that the benefit is that there will be no capital gains tax.