A report shows encouraging signs for London construction after steady growth in 2014, positioning 2015 to be a strong year with forecasted growth at 5.3% and a number of major schemes in the pipeline.
The report from Barbour ABI was outlined by economist Michael Dall to an audience at UBM’s new £61m global headquarters, epitomizing the strength of commercial construction in the capital.
Summarising the report, construction output was on the increase in 2014, with London leading all regions with £28bn, 23% of the UK total and contracts awarded in London also increasing by over 10 per cent year on year.
Looking at 2015, major London construction projects due to begin include the £600m Battersea Power Station commercial office led development and the £420m 10 Fenchurch Street office & retail project, both helping to maintain the capital’s dominance in 2015.
Mr Dall commented: “Moving into 2015, the outlook for overall construction sector growth is encouraging.
“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 £200m Leamouth Peninsula North and the £350m 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.”