A recent report released by Barbour ABI shows encouraging signs for London construction after steady growth in 2014. 2015 is set to be a strong year for the sector, with growth forecast at 5.3% and a number of major schemes in the pipeline.
According to the report, construction output was on the increase in 2014, with London leading all regions with £28 billion, 23% of the UK total. Contracts awarded in London also increased by over 10% y/y. Looking at 2015, major London construction projects due to begin include the £600 million Battersea Power Station commercial office led development and the £420 million 10 Fenchurch Street office and retail project.
“Moving into 2015, the outlook for overall construction sector growth is encouraging,” said Lead Economist Michael Dall. “Residential will likely maintain its dominance as the major sector in construction, with a significant amount of activity likely in London. Projects such as the £200 million Leamouth Peninsula North and the £350 million redevelopment of the BBC Television Centre into a residential community will ensure residential in London continues to grow. Commercial and retail are also likely to increase output in London and overall forecasted growth for the next four years suggests 2015 will be the strongest for construction.”
Adapted from press release by Rosalie Starling