According to a new report from Savills commercial real estate activity in the UK is growing at is fastest rate in six years.
The firm has just released the July edition of its Total Commercial Development Activity Index -- a net balance sheet for overall performance in the commercial real estate sector - showing at +20.1 percent, up from +18.9 percent in June.
The index level shows a rapid rate of expansion in the industry, faster than the firm has seen since May 2007. According to the report growth in public sector development has driven performance although private commercial work has also risen "markedly". The net balances of the two were +31.4 percent and +1.4 percent respectively.
The other key finding of the report was that, unsurprisingly London experienced the strongest growth in commercial activity, although growth accelerated across all three monitored UK regions according to the report. However, the net balance for London posted +31.6 percent in July, signalling the strongest growth in activity for almost seven years. The net balances for the South East and the ‘Rest of UK’ recorded +28.2 percent (43-month high) and +30.9 percent (75-month high) respectively.
As for the sectors, the report shows the industrial sector performing the best. Indeed its net balance of +32.6 percent was not only the highest sector balance, but the highest ever recorded by the index. The office sector wasn't far behind with a net balance of +30.8 percent.
- Tuesday 13 August 2013