Private-sector commercial development activity jumps to 32-month record – Savills
The latest Commercial Development Activity Index from Savills shows that there was another increase in total commercial activity during October, with the net balance of the index reading +11.0% last month after +9.9% in September. Private-sector activity was particularly strong, with the net balance for this particular area at a 32-month high of +21.3%.
Public-sector activity, by contrast, fell again in October to a net balance of -6.0% after a -3.9% reading the previous month.
Developers in October showed some optimism, for the first time since May, as the net balance of the future expectations component of the index came in at +1.8%. “Anecdotal evidence suggested that commercial activity in the upcoming three months is forecast to improve in line with increased bank lending and better confidence in the market,” Savills noted.
There were increases in activity throughout the private sector, with the net balance for private-sector offices activity at +7.6% (in contrast to the public-sector office reading of -7.6%), and for the private retail and leisure sector at + 8.7%. The net balance for the private industrial development sector was also solidly positive at +7.8%.
On a regional basis, Savills noted that activity in London increased for the second consecutive month, but that the pace of expansion had eased from September’s three-month high. In the South East, development activity expanded sharply, and above the three-month average, while the rest of the UK signalled the strongest expansion in activity since March.
