Industrial development land still in-demand despite cooling market
Land for industrial developments is the only type to see rising demand since the first quarter of this year, research from development site sourcing specialists Searchland has found.
Interest in industrial development opportunities crept up by 0.4% since the start of the year, with Yorkshire and the Humber driving this growth, where all industrial development plots are currently sold subject to contract.
Developer demand has broadly cooled during the second quarter of this year however, falling by -2% since Q1.
Overall, land only plots are the most in-demand development plot, followed by farm land, and then industrial development sites.
Mitchell Fasanya, co-founder and CEO of Searchland, said: “Developer appetites remain highest for land only plots as it allows them the freedom to realise their ambitions from the ground up, however, it’s clear that the wider economic picture is starting to dampen their enthusiasm with demand declining since the start of the year.
“In fact, industrial plots are the only land type to have seen a marginal uplift in this respect although there is positive movement across almost every land type when breaking the market down on a regional level.
“Demand remains lowest for both residential and commercial plots and with interest rates continuing to climb while market values stagnate, we expect this to remain the case throughout the remainder of the year.”