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 Barbour ABI findings were outlined by economist Michael Dall and supports similar reports published previously by industry analyst Glenigan.
It found construction output increased in 2014, with London in the lead with projects worth £28bn, 23% of the UK total. Contracts awarded in the capital also increased by over 10% year on year.
Looking at 2015, major London construction projects scheduled to begin include the £600m Battersea Power Station commercial office-led development and the £420m 10 Fenchurch Street office and retail project, both of which will help to maintain the capital’s dominance.
“Moving into 2015, the outlook for overall construction sector growth is encouraging.,” Mr Dall said.
“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.”