2024 continues to present many complex challenges for the UK construction industry, recent high-profile insolvencies in the Contracting market provide a stark reminder of the risks in construction – risk profile and output margins being more important than ever when balanced with the wider economic & global factors that play a fundamental role in the performance of the industry.
However, if recent years have taught us anything it is that our industry is resilient and adaptive to change.
Whilst change brings with it uncertainty, change also creates opportunity which we, at Opus Land, feel well placed to capitalise on. In the midlands industrial market, we have seen a softening in construction cost inflation in the last quarter, the first time we have seen this since the pandemic in what is hoped to be a return to historical trends after a period of unprecedent escalation. Attitudes towards tendering have also moved, reflecting increased capacity and a stiffening in competition for new work in both the main & sub-contracting environments – it is therefore a possibility that we should expect further softening of build costs as 2024 progresses.
It is hoped that this, together with the efforts of the Government to reduce inflation, will provide a foundation for renewed growth as we move forward and look to close the viability gap that has stalled many projects recently.
At Opus Land we see there being a prime buying opportunity in 2024 and we have significant funds ready to invest. If you are an agent, landowner or occupier looking at how you can maximise the benefits from your real estate assets we’d love to talk to you further.
