Solid improvement in April development activity – Savills
UK commercial development activity improved solidly in April, for the second month in a row, according to the latest research from Savills. The firm’s Total Commercial Development Activity Index came in at +8.1% last month, after a +13.1% reading in March.
Savills says the decline in public-sector activity continued in April, with a net balance of -9.7%, while private-sector development activity maintained strong growth as the net balance came in at +18.3%. Private-sector office, retail and industrial development all increased in April, albeit at a slower rate than in March.
Around a quarter overall of those surveyed reported an increase in activity compared with 17% that mentioned a decline, Savills noted. Looking ahead to the next three months, commercial developers were mildly optimistic, the firm added, with a net balance of +5.5% – although this was the weakest positive reading in three months. The general mood of optimism was supported by expectations of new business wins, Savills said.
By region, the growth in activity was strong in London with a net balance of +18.6% the same as March’s high reading. The net balance for the South East region was also +18.6%. The rate of growth eased for the rest of the UK and was weaker than in both London and the South East, but remained solid, Savills noted.
