Work on both public and private sector projects this month fell at the sharpest rate since 2003, according to new figures from Savills.
Savills’ Commercial Development Activity survey, which began in 2003, showed a reduction of 42% in commercial developers’ total activity.
Its Total Commercial Development Activity Index, which monitors the rate of development, fell to -37.8% from 33.8% in July.
Savills said that commercial property developers were “highly pessimistic” about the three-month outlook, and called it the “most marked in the survey history”.
Mat Oakley, head of Savills Commercial Research department, said: “As the consensus for the economic outlook becomes ever more negative, so has the developer’s view on prospects for the future.
“The impending downward movement in the base rate will lead to a pick up in optimism and eventually development activity.”
