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Lack of new build 'a good thing'
20 Nov 2008
The current lack of new buildings will be a positive thing for property investors over the course of the next few years, it has been claimed.
Property consultant Drivers Jonas maintained the fact very few new builds will begin in the next six to 18 months is because financial issues and poor demand is a good thing.
Head of research at the firm, Anthony Duggan, said: "The positive thing for investors and developers is that by stopping construction now, there won't be new buildings being delivered in 2011 and 2012, which means we get a rebalancing of demand over that time."
According to the 2008 third quarter Drivers Jonas' Crane Survey Central London, total construction over the course of the past six months is down by 20 per cent.
It forecasts that 1.5 million square feet of speculative space will be delivered in the last quarter of the year and a further 4.3 million in 2009.
