Record declines for commercial property activity, with developers 'highly pessimistic' about next quarter

Commercial property developers were hit by a sharp decline in business last month as the credit crunch crippled the market.  A survey by property giant Savills found activity in the sector fell at its steepest pace since its records began five-and-a-half years ago.

It said some 42% of commercial developers responsible for offices, retail parks and warehouses reported falling activity in August compared with just 4% enjoying a rise.
The resulting balance of minus 37.8% was down from minus 33.8% in July and marked a record rate of decline.


Savills says work in both public and private sectors is being hit by credit crunch

Mat Oakley, head of commercial research at Savills, developers were "highly pessimistic" about the next three months with both public sector and private sector work on the slide.

He blamed the ongoing lending freeze, which has seen a number of developments abandoned and others put on hold.

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