The decline in commercial development activity in the UK showed further signs of slowing in February, according to the Commercial Development Activity report published on Wednesday by property consultant Savills. Although the decline was still sharp, activity levels dropped at the slowest rate since May 2008, the report showed.
The decline in commercial development activity in the UK showed further signs of slowing in February, according to the Commercial Development Activity report published on Wednesday by property consultant Savills. Although the decline was still sharp, activity levels dropped at the slowest rate since May 2008, the report showed.
The Commercial Development Activity report is based on a monthly questionnaire sent to a panel comprising leading developers and contractors. The results show that just under 35% of survey respondents indicated a decline in overall activity in February, while around 14% reported an increase.
The resultant net balance, the Total Commercial Development Activity Index, registered -20.4%, up markedly from -38.0% in January. The index has now risen for three months running and the latest reading was comfortably above the 2008 average. All nine areas of development monitored by the survey registered slower reductions in activity in February.
Commenting on the February survey, Mat Oakley, head of Savills' Commercial Research department said: 'Spring is clearly beginning to impact on development activity and developers' confidence. While the balance of opinion is still negative, it is clear that some optimism is emerging about the prospects for development. Availability of finance will undoubtedly remain an issue for sometime, but we continue to expect a steady improvement in sentiment as the year progresses.'
