Commercial construction for the 12 months to the end of September slowed to £24.1 billion (down 7.9% q-o-q). Lower output was mainly caused by a reduction in office starts (down 35.1% q-o-q) and in London (down 30.0% q-o-q). However this was largely a result of an unusually strong Q3 2014 dropping out of the cumulative figures. During these three months £2.1bn of work started in London offices alone, including The Scalpel and One Angel Court with project values of £500m and £125m respectively. Nevertheless, total volumes are still 1.8% higher than at this point last year, driven by substantial growth in Industrial (up 26.7% y-o-y) and Education (up 22.0% y-o-y). Growth in new build starts also continued with volumes reaching £13.2 billion, 5.5% ahead of the same point in 2014.
The full report highlights:
• How much construction activity has picked up over the past quarter
• The increases and decreases across the UK
• The movement across different sectors including industrial, offices, retail, hotels, education, medical and community
• Construction volumes by new build or refurbishment
• A construction costs and procurement update
JLL are pleased to partner with Glenigan to write and publish this paper.