This total, according to data from Glenigan, is up 61% from the previous three months and driven by work on major projects worth £100m or more.
Work on projects of this size totalled £1.4bn during the reporting period, a 214% increase from the preceding three months and 401% up from 2023.
This recovery in office construction was not restricted to the biggest projects.
Construction starts on office sites valued between £50m and £100m rose 12% from the previous quarter.
Meanwhile, projects valued between £20m and £50m recorded the biggest rise.
A total of £412m worth of office projects of this size were started in this period, up 127% from 2023.
Momentum is now gaining in the office construction sector with more schemes gaining planning permission.
- The Finance Professional Show 2023: The Video
- Hotel and office projects soften rate of decline in construction starts
- Value of construction starts on PBSA schemes up 34% on Q1 2023
In the three months to April 2024, £2.6bn worth of office construction projects gained planning approval - up 26% from the same period in 2023.
More activity is likely to happen for schemes valued under £100m where there has been a 25% rise in planning approvals compared to the same period in 2023.
At the same time, there was a 22% fall for projects valued at £100m or more over the same period.
Based on these figures, Glenigan is forecasting underlying starts to rise by 13% in 2025 with £5.3bn of work to be carried out.
Allan Wilén, economics director at Glenigan, said: “Changing work patterns will remain an important driver for the sector, supporting a gradual recovery in starts over the next two years as landlords and occupiers refurbish and redevelop premises.”
Leave a comment