Commercial real estate investment in the UK was a mixed bag, or more like a split personality in October according to the latest research from Savills.
According to the data overall commercial investment activity increased 11% in October, the second consecutive monthly growth after the 9.9% growth in September. However, this increase was fuelled by growth in private sector investment, while public sector investment continues to decline.
In fact, the gap would struggle to be anymore pronounced; public sector investment fell for the 7th consecutive month in October while private sector investment stretched to a 32 month high. Savills Total Commercial Development Activity Index shows public sector investment as 6% lower in October than September, following a 3.9% drop in September, while private sector investment grew 21.3% in October.
No one can fail to see the split between the two and it doesn't stop there. On a sector by sector basis the industrial sector was among the noteworthy performers with activity growing to a seven month high.
By the regions, London is still the strongest, but the gap is starting to close as London's growth starts to stabilise, with growth slowing from September's 3 month high. Growth was also strong in the south east according to the report, beating the series' three month average.
- Monday 26 November 2012