There has been a sharp decline in overall commercial development, according to Savills’ latest construction survey. In May, around three times as many commercial developers (30 per cent) reported a reduction in total activity than those that signalled a rise (ten per cent).
Commercial developers noted that weak market sentiment and tighter credit availability continued to have a negative influence on activity levels in May. A number of respondents said lower bank lending, and deteriorating prospects for the economy, were likely to constrain market demand.
