Refurbishment activity jumps as overall development stays positive
On average, total commercial development activity increased in November compared with October, but the rate of growth slowed, according to Savills’ latest research. The firm’s Total Commercial Development Activity Index posted a net balance of +9.1% in November, after October’s +11.0% reading.
Activity in the private sector continued to rise while public-sector activity levels remained in decline. The survey notes that growth in refurbishment activity reached a 28-month high in November, with a net balance of +14.9%.
With regard to the next three months, developers surveyed just managed to remain in the optimistic category overall, with the future expectations index reading +1.3%. Savills notes that those surveyed said that stronger confidence in the market and the release of government funds would result in improved activity.
Private-sector office activity in November posted a net balance of +5.3%, while the reading for public sector office activity fell to a three-month low of -12.3%. There was a contraction in both public (-13.4%) and private (-3.1%) retail and leisure activity, for the first time in three months. By contrast, the net balance for industrial/warehouse activity jumped to +14.4%, the fastest increase since March.
