Commercial property activity 'falls'

Property development activity in the UK fell during the final month of 2008, a new study has revealed.

Consultancy firm Savills has revealed that 54 per cent of those polled in its regular survey reported a drop in activity over December, while only around five per cent claimed to have experienced an increase.

It is believed that weakening demand and the current financial climate are major factors behind the fall.

Mat Oakley, Savills' head of commercial research, said: "While the noise about the recession has probably drowned out any relief at the falling cost of money, there are signs this month that activity and confidence may have reached their nadir."

He added that both are expected to improve this year.

Recent research by real estate services firm Jones Lang LaSalle claimed that the European property market will see investment over the next 12 months.