UK Property Construction Levels Double

A recent report by Drivers Jonas Deloitte (DJD) revealed that construction of prime commercial property in London almost doubled in the past 6 months.

Such surprising activity of UK property developers can be easily explained by increased demand from tenants and low supply.

They research by DJD showed that 25 new construction schemes were launched in the past 6 months. Now, a total of 6.4 million square ft is under construction.

A report published earlier by CB Richard Ellis showed that rent rates in London rose by 2.2% in the first quarter of 2011. This is mostly true for the West End and, surprisingly, not for Central London.

Commenting on the findings of the research, Mr. Duggan of Drivers Jonas Deloitte (DJD), said that "we continue to believe that the best buildings in the key locations will be successful but caution those looking to deliver in 2014 and 2015 in what is likely to be a fully supplied market if all the schemes we are monitoring go ahead."

To view the full version of DJD report, please, visit the company’s official website.