IMPROVING confidence, a rising economy and easing lending conditions have helped to boost activity in the commercial property sector for the 21st month in a row.
According to Savills’ monthly index, which monitors 200 commercial property developers’ activity, showed the net balance stood at 26.9 per cent in May, slightly down on the 23.6 per cent recorded in April.
All nine sectors – including private and public offices, retail, leisure and warehouse projects – recorded higher activity in May, but the fastest rise in new projects was in the private new build sector.
“The south east and the rest of the UK continue to report marked expansions in development activity as they play catch-up with London, which posted further growth over the month,” Savills’ head of building & project consultancy Simon Collett said.
The property advisory firm said developers who took part in the poll remained optimistic about future commercial activity, citing increased availability of finance and better economic conditions.
However their poll of future expectations was down slightly from its peak in April, recording a net balance of +24.8 per cent in May compared with 35.2 per cent the previous month.