The IPD UK Development Report has reported the lowest number of developments in the UK since 1983, when the research began.

In 2010, all developments returned a negative 0.3%, considerably lower than the return supplied by the all commercial property average (15.1%).

The results for 2010 are counter intuitive to those produced over the full history of the research, said Mark McIvor, developments manager at IPD. 'Returns for those in the shortest periods actually suffered, while those developments that took over 49 months were the best performing, with an IRR return of 7.6%.'

McIvor added: 'This is partly due to the prevailing market conditions and the shortage of development finance which is limited to those major schemes in prime locations which still enjoy strong occupier and investment demand.'

Over the course of the 17-year history of the research, developments that were completed in under 36 months outperformed those that took longer. Those completed within 24 months recorded 7.8%, while those completed over a period of 36 months recorded returns of 8.1%.