UK commercial development activity declined in August at the sharpest rate in 14 months, according to data compiled by property adviser Savills. The decline reflects a further steep fall in public sector development, alongside a decrease in private-sector activity for the first time since July 2009. Almost 28% of commercial developers reported an overall fall in activity during August, compared to around 15% that signalled a rise.
UK commercial development activity declined in August at the sharpest rate in 14 months, according to data compiled by property adviser Savills. The decline reflects a further steep fall in public sector development, alongside a decrease in private-sector activity for the first time since July 2009. Almost 28% of commercial developers reported an overall fall in activity during August, compared to around 15% that signalled a rise.
As a result, the Total Commercial Development Activity Index - a net balance monitoring the overall performance of the UK commercial property sector - posted -13.3% in August, down from +0.6% in July and well below the average for the year to date (+0.7%).
Survey respondents anticipate lower levels of activity in all three monitored areas of development, with firms particularly downbeat about the outlook for office activity in the next three months.
