Glenigan makes its forecasts for 2011
The recovery in the UK recovery industry earlier this year has faltered, with the value of projects starting on site in the three months to November 14% lower than the same period last year, according to Glenigan. Economics director Allan Wilen, says, ‘Project starts in Government-funded sectors, private housing and even retail fell.’
Nevertheless this industry analyst forecasts that retail, office and rail will be the construction bright spots in 2011. Mr Wilen explains, ‘The major supermarkets have led retail project growth in 2010, and this is set to continue in 2011. Retailers and landlords are also expected to increasingly refurbish premises to increase consumer footfall and spending. Major new shopping-centre projects will take longer to emerge, although work is continuing on Westfield’s Stratford City project, and work has restarted on the Trinity Quarter scheme in Leeds.’
New office projects fell sharply during the recession, so little new floor space has come onto the market. In central London demand, capital and rental values have been rising, and the shortage of quality office space will worsen as the economy recovers. Developers have been revisiting planned schemes, and project starts are forecast to rise in 2011. Developers such as Land Securities are already pressing ahead with major projects such as the £500 million ‘Walkie-Talkie’ building in the City of London.
