Renewed growth in commercial activity, say Savills

According to the results of the Index, the UK commercial property sector posted +9.9% in September showing strong growth after a four month decline and an improvement from -14.8% posted in August.

Private commercial activity rose sharply, and at its fastest rate since March. There was renewed, albeit marginal growth in industrial/warehouse, private new build, private office and private retail and leisure activity.

Refurbishment activity increased at a solid rate, following a decline in August. The fastest fall was in office fit-out activity, followed by public retail and leisure.Commercial developers signalled pessimism for the fourth month running. However, the net balance in September (-0.3%) improved from that seen in August (-1.0%), and pointed to only marginal pessimism.


Some survey respondents suggested that negative expectations were linked to reduced bank lending and weak market confidence.

Total commercial activity

September data indicated renewed growth of total commercial activity in the UK for the first time in five months. Activity in the private sector rose sharply. Meanwhile, public sector activity fell at a modest rate. The net balance posted +9.9% in September, up from the reading of -14.8% recorded in August.

New build activity

New build activity in the public sector fell during September. The rate of contraction slowed from the previous month but the current sequence of deterioration was extended to six months. Meanwhile, in the private sector, there was renewed, albeit marginal, growth in new build activity with a net balance of +3.5%.

Refurbishment activity

Following on from a slight fall in August, refurbishment activity increased during September. The net balance posted +7.4%, up from the reading of -3.1% in the previous month.