New figures show that the fall in new developments of commercial property has slowed more than at any point since the downturn began late in 2007.
Although growth has not yet returned to the sector, the news will prompt hope that a ‘point of inflection’ has been reached in the market, signalling the beginning of the end to the misfortunes of the commercial property sector.
However, the report suggested that optimism for London’s beleaguered office space market would be premature, as most of the change of fortunes was focussed on industrial and retail development.
Nevertheless, all facets of development activity have risen to a 12-month high in May, with decreasing falls in commercial development now having been recorded for six months in a row.
The Total Commercial Development Activity Index read -4% for May, compared to -8.9% for April – the smallest contraction in over a year and a half.