Commercial Property activity on the increase…

Everyone has been talking about the UK property market in fairly unsure terms for some time now, but there are signs that things are beginning to sustainably pick up, particularly with respect to commercial property. June of this year saw commercial property activity in the UK rise quite significantly – at a faster pace than any time over the past six years, in fact. This information was provided in a report by real estate advisors Savills covering three regions surveyed in the UK, and highlighted a rise in activity in both public and private commercial property.

With the exception of public new build projects and public office work, seven out of the nine sectors of the commercial property market showed significant growth. The fastest rise was reported in industrial and warehouse markets at 26.3% and London’s market increased to a net balance of 23.6%. The net balance for the whole of the UK was 26.5%, which was a substantial rise on the figure for May, which was 11.5%.

There could be any number of reasons for this sudden – and very welcome – spike in the commercial property markets in the UK. An increase in investor confidence has been highlighted as one potential reason, as well as a number of new contract wins, and even the weather is thought to have played a part as buyers look to snap up properties during the summer months. Solid client demand for commercial properties is indicated in the Savills report as being a factor in positive predictions for the commercial property market on an ongoing basis, which many feel will continue to grow in strength.

Private new build projects are on the rise and there has also been a jump in the number of retail and leisure projects in both the private and public sectors, with the private work having increased at its fastest rate since 2007. Private office and refurbishment activity were also highlighted in the report as being growth areas, with refurbishment activity increasing by 9.6% in May of this year – a movement that has been positive ongoing for the past ten months.

The figures from the Savills report indicate that there is much to smile about when it comes to the UK commercial property market in summer 2013. What many people are hoping is that this is a sign of recovery for the UK in general and that perhaps the easing of the recession might be in sight.

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