This article was taken from Construction News Plus and can be read in full by clicking the link.
The construction industry is braced for another tough time in 2013 but expects start to see signs of recovery towards the end of the year, according
to new year predictions.
Jones Lang LaSalle director of EMEA research at Andrew Burrell sees another difficult year as recovery is slowly re-established, amid a broad consensus of subdued growth.
Office, retail and residential developments are set to be much stronger in London than in the rest of the country, with speculative projects set to reappear in the London office sector during the second half of 2013.
Greater office demand will come from mergers, acquisitions and corporate consolidation, along with the rapidly growing technology, media and telecommunications sector, according to JLL.
This will be helped by companies dipping into large cash reserves.
The industrial sector will continue to focus on ‘build to suit’ models, but will also see some positive signs for a speculative development resurgence.
EC Harris head of strategic research and insight Simon Rawlinson expects market conditions for both investment and construction to shift during 2013.
Project approvals, funding guarantees and new PFI models should combine to create opportunities for both investors and delivery teams, he said, but progress could still be slow.
He said: “Although conditions remain challenging, close attention to the supply chain – regular payment and work on reasonable terms, for example – is an investment in future relationships and capacity.”