Dip in development activity, but still positive overall – Savills
Commercial development activity dipped during April after a strong March, according to Savills, which says its Total Commercial Development Activity Index reached a net balance of +5.1% in April – the eighth consecutive positive reading – down from +10.6% the previous month.
The net balance was at a three-month low in April, Savills notes, but still pointed to growth in activity over the month. While private-sector commercial activity expanded for the eighth month in a row, public-sector commercial projects declined for the second month running.
Around 22% of developers responding to Savills’ survey reported an increase in activity, but 17% indicated a decline.
Looking ahead, the level of positive sentiment weakened compared with March, with the three-month outlook net balance falling to +8.4% from +9.5% the previous month – although the reading remains positive, signalling continued optimism overall. Evidence from the panel indicated that this reflects the signing of new contracts: the lack of bank financing has, however, continued to cause concern.
