Sharpest decline in commercial developments

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by Lin Freestone

Savills’ latest survey shows that in August 2008 commercial property developers experienced the sharpest decline in business for five years.

Only 4% of the commercial developers participating in the survey reported a rise in activity. A total of 42% of developers responsible for offices, retail parks and warehouses said there had been a fall in activity during the month, and were pessimistic about the next three months.

As a result of the freeze on credit, a number of developments have been put on hold or abandoned completely.

The study by property developer Savills forms part of its monthly commercial property development research, and concluded that work on both public and private sector projects fell at its sharpest rate in the survey’s five-and-a-half-year history.