‘Dramatic’ drop in shelved projects
Last year saw a ‘dramatic’ fall in the number of construction projects on hold, with the total value of shelved UK schemes 64 per cent lower than at the end of 2009
According to industry monitor Glenigan, the total value of shelved UK schemes will continue to remain low for the coming year while more on-hold schemes are restarted.
Encouragingly, the statisitcs for 2010 also show an increase of 9 per cent in the total number of mothballed projects being resurrected.
Compared to 2009, the office sector saw a huge 90 per cent boost in schemes returning to site while the number of industrial project restarts was up 115 per cent.
‘Renewed confidence among private non-residential sectors was to thank for this increase’, said a Glenigan economics commentator.
He added: ‘In 2009, there was a large volume of residential and office projects shelved as the economy struggled to deal with the aftermath of the credit crunch.
‘Over 2010, developers returned to many of these projects as market conditions improved. Indeed, the flow of private housing projects being restarted over the first half of last year was one of the main drivers of the recovery in house building.’
In the three months leading to January, the ‘underlying value’ of all newly shelved projects fell 53 per cent compared to a year ago and the value of projects being cancelled, having already been on hold, fell by 74 per cent over same period.
The total value of projects starting on site was however expected to be 5.6 per cent lower in the first quarter of this year compared to last year. Starts on site are predicted to rise 1.8 per cent in 2012’s first quarter.