Developers looking to regions for new build projects
UK commercial property developers are increasingly looking to regions such as Cambridge and the East of England, rather than London, for new build projects.
The latest state of the market report from Savills shows that commercial activity continued to rise sharply across the UK regions in the last month - although London saw a marked deceleration in growth.
The report suggests that developers would even be jumping ahead of the curve were in not for red tape delaying the pace of some speculative projects and refurbishments.
Martin Mills, director of building and project consultancy at Savills Cambridge, said: “There is no surprise in July’s positive research figures, despite many people in the market being on holiday or about to go.
“The research indicates a greater confidence in UK commercial activity compared to 12 months ago, with the corrections in demand being less pronounced than previously.
“The speed at which utility providers can divert main supplies to new sites has slowed down activity at some projects.
“Whilst there is a wish to deliver refurbished projects as quickly as possible, there is a need to meet conservation standards. This takes time and does prevent developers from jumping in front of the demand curve.”
Public commercial work improved at a firmer rate, but continued to lag the private sector, where growth remained elevated.
In line with recent trends, all nine monitored sub-sectors posted a rise in activity led by industrial/warehouse. The slowest increase was registered on public office activity.