The construction data provider has found that project starts fell 51% in May 2025 from the previous year.

At the same time, main contract awards were down 52% with detailed planning approvals also falling by 44%.

Glenigan found evidence of strengthening demand for such work, despite these declines.

Nearly half of London office investments (45%, or £2.8bn) were related to refurbishment or retrofit projects according to Knight Frank data.

This is largely due to an expected 7.6m sq ft shortfall of new and refurbished office space over the next five years.

Office use patterns are also continuing to change and putting an emphasis on refurbishment work.

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In the first quarter of 2025, a recent Savills’ Workthere report found a 40% quarter-on-quarter increase in the demand for flexible office space.

And recent research from Irwin Mitchell also found more firms were reassessing their pandemic-prompted downsizing of offices.

Nearly half of the firms surveyed by Irwin Mitchell reported they planned to expand their office footprint in the next 12-18 months.

“The outlook remains cautiously optimistic, with activity expected to track alongside economic recovery and policy developments,” noted Glenigan in its commentary.

“While new project activity is subdued, occupier demand, refurbishment opportunities, and sustainability-driven upgrades continue to reshape the office sector’s trajectory.”