11th Sep 2013 05:30
LONDON (Alliance News) - Commercial property development in the UK private sector expanded at its fastest rate since March 2007 in August, according to an index from property consultant Savills.
The Savills Commercial Development Activity Index, which shows a net balance monitoring the overall performance of the UK commercial property sector, said activity rose to +26.7% in August, up from +20.1% in July, pointing to the strongest growth rate in over six years.
The net balances for private and public commercial activity increased to +37.9% and +7.0%, a 77- and 42-month high, respectively.
Savills said public commercial projects rose at the fastest pace in three-and-a-half years, while private work growth was the strongest since March 2007. Activity in private retail and leisure increased, as did new build activity.
However, after increasing in July for the first time since October 2009, public office work fell in August.
"Development activity is now rising across the whole of the UK, with markets outside London showing the strongest growth this month," said Savills Director of Building Consultancy Michael Pillow said.
"This is a clear sign that developers are expecting a sustainable national recovery in tenant demand over the next few years," he added.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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