UK commercial property development activity increased for the third month in a row during November, with refurbishment activity rising to its highest level in 28 months, according to a new report.

Estate agent Savills’ monthly UK Commercial Development Activity Report, which analyses the activity and intentions of more than 200 commercial property developers, finds that developer's confidence about the future remained positive in November, with respondents citing better market conditions and expectations of an easing in credit conditions as reasons for optimism.

Other key findings:

• Total commercial activity rose during November, although at the slowest rate in the current three-month sequence of growth
• Whereas public-sector commercial activity fell, an increase in private-sector activity was signalled
• Growth in industrial/warehouse activity was at an eight-month high
• Private-sector retail and leisure activity recorded its first contraction in three months

Regional perspective

All three regions monitored by Savills recorded net increases in activity during November.

London signalled the strongest expansion, with growth at a seven-month high. The Rest of the UK also saw rapid expansion. In the South East, activity rose only slightly.

The Spring 2013 issue of Re:locate magazine (out March) will include a special Spotlight on London and its property market.