INDUSTRY NEWS

Commercial property construction facing 3-year decline

Commercial property construction in the UK will fall for a minimum of three years, a leading materials supplier has said.

Noble Francis, economics director at the Construction Products Association, told Bloomberg the industry will record a "slight" contraction next year, followed by two years of deeper decline.

"It’s not looking great," he told the news agency. "The order books for the commercial sector are considerably down on last year."

Michael Prew, a London-based analyst at Lehman Brothers, explained why the market will take time to recover. Bloomberg reported he said it can take two years to obtain planning permission.

This creates a "feast or famine cycle", he added, which leaves commercial property behind the regular economy.

There are several construction projects due for completion, adding to the choice of business property in the capital.

Developer, Land Securities, said last month it was considering delaying its build of the ‘Walkie-Talkie’ office block. Its chief executive, Francis Salway said: "If we think a pause is the right thing, then we will do it."

ADNFCR-1329-ID-18624350-ADNFCR

Leave a Reply

Your email address will not be published. Required fields are marked *