Development activity rises in September – Savills
Commercial property development activity in the UK rose in September, for the first time in five months, reports Savills. The firm’s Total Commercial Development Activity Index reading for September came in at +9.9%, compared with -14.8% for August.
The net balance for private-sector activity jumped to +18.4% from -8.9% in August while the contraction in public-sector development activity was the smallest since the current sequence of contraction began, Savills notes, with a net balance in September of -3.9%.
Commercial developers indicated “marginal pessimism” for the next three months, with a net balance of -0.3% for the future expectations index in September, after a -1.0% reading in August. Some of the responses to Savills’ survey indicated that restricted bank lending and weak market confidence were causes for pessimism.
Activity in London increased strongly last month, to a net balance of +11.7%, after a sharp fall in the capital during August. Activity in the South East also rose solidly, with a net balance of +14.9% recorded for the region, after a significant reduction the previous month. The rest of the UK meanwhile recorded an expansion in activity for the second month in a row, with a net balance of +7.2%.
