UK office construction decreased to the lowest level in 10 years

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Office development has decreased throughout Britain to its lowest level in 10 years as it is constant economic uncertainty and high costs constantly constantly constructive construction confidence, according to the industry survey.

The amount of office space is under construction in UK It decreased to about 23 million square feet in the first quarter of this year, its lowest point since the beginning of 2015, according to the Costar analysis, which provides a search for the commercial real estate sector.

The construction activity decreased by more than 3 million square feet during the past year, according to the analysis.

“The developers stop to stop breathing amid economic uncertainty and the high cost of debt and construction,” said Costar.

Data represents a new blow to the government’s efforts to advance economic growth by “obtaining a British building again.”

In March, I mentioned S&P Global The construction activity in the United Kingdom has decreased at the fastest frequency since May 2020, due significantly to a weakness in the home building sector due to silent demand amid low consumer confidence and economic growth.

Costar’s analysis revealed a blatant contrast in the offices building throughout the UK with Oxford-Cambridge Tech.

In the cities of Oxford and Cambridge together, about 1.8 million square feet of offering office were ongoing with developers who were keen to take advantage of the prosperous demand resulting from university separation, innovation and established technology companies.

In the capital, there were about 12 million office space under construction, including a northern side of the pavement, and it is an attachment to the research and development of life sciences in Canary Wharf and 50 Fenchurch Street, where work on the site began on an area of ​​650,000 square feet.

The demand for office space in London was driven by the employers of senior work looking for high -quality “A”, with new features such as fitness suites and yoga rooms, to lure the employees to return to the office after a period of hybrid work.

On the contrary, no small or non -existent space has been built in markets such as Liverpool, Bristol and Glassco, as the relatively high -grade AR vacancies mean that there is less appetite for developers to offer more offices to a market that has already been offered.

Real estate experts said that the work of the workforce was constantly challenging the construction sector.

“After Britain left the European Union, we saw a large number of people who traditionally worked in the construction industry in the United Kingdom,” said Lyona Ahmed, a partner with Taylor Wesyge, the law firm. “The workforce is an issue.”

The Royal Organization for Legal Surrounds said that the environmental regulations of office buildings were also affecting development.

“Despite the government’s desire to see the building of Britain, there are countless factors that weigh this,” said Simon Robinson, RICS, Simon RICS.

In the future, Costar’s analysis referred to some positive indicators of the office market, including construction orders that reach the highest level in three years during the first quarter, according to the data of the National Statistical Office.

However, the analysis noted that the level of construction activity was “unlikely to rise significantly in the short term.”

The Ministry of Housing said that the government is taking “decisive steps to cancel growth insurance and accelerate construction” through the draft planning and infrastructure law in addition to the framework of the national planning policy.