Commercial Property Activity Increased Sharply in June
Total commercial property activity in the UK experienced a sharp rise in June, reports say.
In what has been confirmed as the fastest-paced increase in 6 years, both public and private commercial projects have expanded, according to research by Real Estate Advisors Savills.
The net balance for London rose to a three-month high of 23.6%, and the rest of the UK was 26.5% - up from 11.5% in May.
The most prominent rise was noted in industrial and warehouse activity - a net balance posted at 26.3% in June. The total commercial development activity index, monitoring the overall performance of the UK commercial property sector, rose from 5.8% in Mar to 18.9% in June.
This growth has signaled optimism for commercial developers, with evidence suggesting a continued projected rise, in line with forecasts of better economic conditions, strengthened client demand, and improved confidence.
Aleksandra Starczynska, analyst at CBRE research, said "Encouragingly, for the first time since November 2011, we witnessed positive change in capital value across all sectors. This meant that total returns at the all UK property , while still subdued, are at their highest since Summer 2011."