Commercial property activity slumps

ACTIVITY in the commercial property sector witnessed its sharpest decline since February 2009 last month, with almost 34% of commercial developers reporting a decline in activity.

It was the fourth successive month in succession where development activity in the property sector fell, according to property consultancy Savills

The net number of developers reporting an increase in activity reached -16.1%, from -10.5% in September.

The survey also reported a “marked” degree of pessimism over the outlook for the next three months. Every sector of the property market posted a decline in activity, with the sharpest being reported in public sector-related projects.

Howard Morgan, director and head of Savills’ building consultancy in Manchester, said: “Until developers and occupiers acknowledge the benefits of the current market such as low construction and fit-out costs combined with the frozen record interest rates for borrowing of available credit, the market will continue to remain stagnant.

“We are, however noticing, a trend of cash rich or appropriately-geared clients becoming more active.”