Login to UKBP
Commercial Property News
Savills commercial development activity outlook "negative"
UK commercial property may not perform as well as it has done so far this year in the months to come.
This is according to the Total Commercial Development Activity Index published by Savills today (August 9th), which looked at data from the business property market for July.
Commenting, Michael Pillow, head of building consultancy at the organisation, said: "A general collapse in expectations for the UK economy on the back of public sector austerity has clearly washed over into the development market.
"We expect to see further caution about the future until the full details of the spending review are announced in October," he added.
In the report, Savills noted there had been slightly more activity during the previous month but the outlook has now turned "negative", which is the first time it has done so for twelve months.
Data published for last month suggested the levels noted during that period may have risen because of the "modest reduction" in deals in June.
The private sector is thought to have accounted for the overall growth, while development in the public sector did the opposite.
Savills also noted some 19% of those who replied to the survey in June saw a rise in total activity, whereas almost 18% reported a decline in July.
Office development between June and July in the public sector was found to have sharply dropped, however the rate at which it is doing so has eased.
At the same time, public sector retail and leisure development dropped, but this was the slowest rate it has done so for five months, Savills revealed.
The global real estate service provider was set up in 1855 and has more than 200 offices in areas such as Africa, Europe and the Middle East.
It states its expertise in the field is "of the highest calibre" and displays "innovative thinking".
Posted by Sarah Smith
This is according to the Total Commercial Development Activity Index published by Savills today (August 9th), which looked at data from the business property market for July.
Commenting, Michael Pillow, head of building consultancy at the organisation, said: "A general collapse in expectations for the UK economy on the back of public sector austerity has clearly washed over into the development market.
"We expect to see further caution about the future until the full details of the spending review are announced in October," he added.
In the report, Savills noted there had been slightly more activity during the previous month but the outlook has now turned "negative", which is the first time it has done so for twelve months.
Data published for last month suggested the levels noted during that period may have risen because of the "modest reduction" in deals in June.
The private sector is thought to have accounted for the overall growth, while development in the public sector did the opposite.
Savills also noted some 19% of those who replied to the survey in June saw a rise in total activity, whereas almost 18% reported a decline in July.
Office development between June and July in the public sector was found to have sharply dropped, however the rate at which it is doing so has eased.
At the same time, public sector retail and leisure development dropped, but this was the slowest rate it has done so for five months, Savills revealed.
The global real estate service provider was set up in 1855 and has more than 200 offices in areas such as Africa, Europe and the Middle East.
It states its expertise in the field is "of the highest calibre" and displays "innovative thinking".
Posted by Sarah Smith
Mon, 9th Aug 2010