August experienced the first rise in commercial development activity since October 2007 and sentiment reached its strongest level for two years, according to Savills’ latest research.
It found that 21% of survey respondents reported an increase in development activity, compared with 13% that signalled a fall.
With the net balance at +7.8% in August, the total commercial development activity index indicated a rebound in activity following the sharp fall seen earlier in 2009.
The strongest increases in activity were in private sector retail and leisure and refurbishment activity, while private sector office development and new-build were the worst performing sectors, with the latter contracting for the eighteenth month in a row.
The survey found that commercial developers were optimistic about the three-month outlook in August, with around twice as many expecting a rise in activity (23%) as those anticipating a fall (12%).
At +11% in August, the net balance signalled the strongest degree of optimism in the sector for two years, with the outlook most positive for industrial/warehouse and retail and leisure activity.
However, sentiment regarding office development remained subdued.
