Economic & Property Market Review, Q2 2012
Occupier demand remains subdued across most of the commercial property market although the latest RICS UK Commercial Market Survey suggests that demand has stabilised (a balance of +3 in Q1 2012 compared to -11 in Q4 2011). The survey suggests that demand for space fell in retail, remained stable for office space and increased for industrial space.
Construction activity remains low and new orders during Q4 2011 fell 2.5% from the previous quarter, and 14.1% for the year. The value of new construction orders in real terms for retail, office and industrial property fell 15.7% during Q4 2011.
Although new construction activity is low across the UK as a whole, the last quarter saw 15 schemes start on site in central London, meaning there is now 9.6 million sq ft under way. 2.6 million sq ft of speculative development is due to complete across central London during 2012.
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