A new survey by Savills reveals that the pace of recovery in the commercial property market increased sharply last month.
The Total Commercial Development Activity Index, which monitors the overall performance of the UK’s commercial property industry, climbed from 5.8 per cent in May to 18.9 per cent in June. This was greatly aided by activity in the industrial and warehouse sectors, with net balance here coming in at 26.3 per cent.
Savills also provided several theories as to why activity rose so steeply, with the number of new contract gains and the ninth consecutive month of stated optimism by commercial developers playing huge roles. However, the weather has also managed to have a positive effect on the commercial property market, with the beautiful sunshine seemingly putting investors in an optimistic mood.
Seven of the nine monitored sectors managed to post growth, in fact, with only public office and public new build projects failing to continue the run of good news. However, while it is true that public new builds posted a slight contraction, public office projects managed to stabilise in June – this is particularly positive news given that the sector has been in sustained contraction for over three and a half years.
Fortunately, it seems that this trend is set to continue, with experts forecasting a sustained boom in activity amidst improvements in the economy, an increase in demand for top-end property from clients and an overall air of confidence across the business sphere.
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