anyspacedirect news

UK commercial property development index at its highest rate in two years

9th April 2012
There is increasing confidence that the UK will avoid its second recession in four years following the news of an increase in a UK commercial property development index to its highest point in more than two years.

The Total Commercial Development Activity Index, measuring the nation’s commercial property industry, soared to 13.1 per cent from a negative rating of -3.6 per cent in February, following a report published today by London-based broker, Savills Plc.

The increase was the first in nine months, but more importantly it lifted the index to its highest position since February 2010.

Matt Oakley, head of commercial research at Savills, said: “Developers are becoming slightly more optimistic about the prospects for economic growth. People are beginning to embrace the idea that a double-dip recession isn’t inevitable.”

Six of the nine industries involved in the activity index reported gains in commercial property development, led by industrial units to let and warehouse-related real estate projects. Developers of public retail and leisure premises reported the biggest decline in confidence across the board.

The positive report also indicates that growth is being found in all areas of the county and is not simply centred on the capital.

Michael Pillow, head of building consulting at Savills, said: “Encouragingly, this recovery appears to be broad-based and not just London-focused.

“With development activity rising at its strongest rate for two years, it is clear that developers are anticipating a demand-side improvement.”

At our portfolio of industrial space to rent and additional warehouse space is some of the most valuable in the country. As we work with some of the UK’s most prolific industrial space operators, businesses can find space that ticks the boxes of all their business needs and goals.
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