UK commercial development hits five year low
Thursday, 15 May 2008

The amount of commercial development in the UK has fallen to its lowest level in five years, according to research by Savills.

At -20.8% in April, down from -16.4% in March, the Total Commercial Development Activity Index - a net balance designed to provide a single-figure measure of overall activity in the commercial property sector - fell to its lowest level since Savills and NTC Research first began collecting data back in March 2003.

Almost one-third of commercial developers reported a fall in overall activity in April, compared to just 12% that signalled a rise.

April’s sharp decline was widely attributed to unfavourable operating conditions.

Developers commented on uncertainty about the prospects for the UK economy, the ongoing credit squeeze and weaker market demand.