The Glenigan forecast predicts that construction starts are set to bounce back over the next two years, driven by a combination of increased private sector confidence and public investment.
The new report predicts a rise of 8% in underlying starts – projects valued under £100m – next year that will increase to 10% in 2026.
The growth will occur at varying rates across sectors, with eight of the 10 sectors covered by the Glenigan forecast projected to see increases of 5% or more in at least one of the next two years.
Offices is the individual sector expected to produce the biggest rise in starts as clients are reassured by a widespread return to work by staff as the Covid-19 pandemic becomes a memory.
After a 21% slump in underlying starts this year – the biggest drop of any of the 10 sectors covered by Glenigan – the bounce back in 2025 of 18% will be the strongest.
The other three key parts of the wider private commercial building sector are also showing signs of an improvement, which will increase by 2026.
After a strong period of growth this year, hotel & leisure construction starts will slow to 6% in 2025 according to Glenigan’s industry analysis and rise to 9% by the following year.
