Commercial Property Development Up In June
There may be more commercial property available for investors in the UK after construction activity increased in the month of June. According to data from Savills, 22 per cent of developers said they experienced a rise in the number of new properties they were building, compared to 21 per cent that saw a fall, with total commercial activity rising slightly. Private sector building grew by the fastest rate seen since February 2010, driving the overall increase of 0.8 per cent and offsetting a slight drop in public sector development, and Savills suggested that it expects this to continue. Michael Pillow, head of building consultancy at Savills, said: “We expect this trend to be sustained as rental growth begins to recover in the best regional office markets, though debt availability will remain a significant dragging factor.” The Knight Frank European Market Indicators report for summer 2011 recently showed that commercial property development has stabilised or seen modest growth in most of the major European markets.
