The value of commercial property transactions has dived by 71% year-on-year since the first coronavirus national lockdown was introduced, new data has revealed.
Property transactions in England and Wales fell to £15.1bn between late March and September this year, down from £52.1bn for the equivalent period in 2019, according to data from Search Acumen.
The total number of transactions dropped by 73% to 23,036 from 84,943 the previous year.
Southampton, Swindon and York were among the areas hardest hit by lockdown restrictions. In Southampton, transactions fell by 96% to £12.3m from £288.7m; Swindon saw deals drop by 92% to £13.3m from £166.1m; and York saw transactions dive by 88% to £18.3m from £158.3m.
Search Acumen attributed the sharp falls in the value and number of deals struck to a “contraction in demand for offices and rental properties”, owing to home-working practices and occupiers re-evaluating their real estate footprints, along with a “flight of people” from inner-city areas.
Greater London saw a 77% fall in the value of transactions, dropping to £4.7bn from £20.3bn.
However, the North East market has remained resilient. County Durham saw a 69% rise in total transaction value to £389m from £230m last year, Tyne and Wear saw deals rise by 16% to £624m from £537m, and Northumberland saw a 6% increase to £148m from £140m.
Caroline Robinson, commercial real estate business development manager at Search Acumen, said: “The commercial real estate sector needs to urgently prepare for the impact that widespread adoption of remote working practices and extended periods of social distancing measures may have on future occupancy rates.
“Developers must innovate and ensure properties meet firms’ and investors’ new requirements.”
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