Construction in commercial sector improves – commercial mortgages

10 November 2006

Construction activity within the property market for investors with commercial mortgages improved significantly during October, according to new statistics.

In its latest commercial activity index, Savills' research department found that development within the sector improved for the tenth consecutive month reaching 61 points, compared to 59.3 points during the previous month, reports Reuters.

The survey also revealed that confidence in the sector among commercial property developers was higher than in previous months.

In its report, Savills states: "The degree of optimism picked up in all three areas of activity monitored by the survey in October, with confidence the strongest for office construction work."

Commenting on the market for commercial property recently, the Royal Institution of Chartered Surveyors (Rics) said that investment demand in the sector demonstrated a "solid" rate of growth during the third quarter.

According to Rics, the market for retail property experienced significantly stronger increases in the number of purchases made by investors, including those with commercial mortgages.