UK construction activity February 2025: Offices

Offices overview

• 17 per cent decrease in project starts year-on-year
• 56 per cent decrease in main contract awards from last year
• 35 per cent increase in detailed planning approvals compared to a year ago

Project starts in the office sector experienced a decline on a year ago. However, there was an 18 per cent increase quarter-on-quarter driven by major projects (£100m or more), which more than doubled against the previous quarter. Major detailed planning approvals also grew 64 per cent on a year ago

With AI infrastructure investment increasing, demand for data centres is expected to drive office construction in the coming months.

Types of projects started

Only two value bands saw year-on-year growth.

• Projects over £100m rose 1 per cent to £750m
• Projects between £50m and £100m surged 96 per cent to £358m
• Projects from £20m to £50m fell 66 per cent to £178m

Regional

• Performance in project starts was mixed
• More than half of the regions saw growth in detailed planning approvals
• West Midlands recorded strong growth in both starts and approvals

London had the highest share of office project starts (54 per cent) despite a 32 per cent drop, supported by the £500m Project Vista development in Lambeth. The South East doubled its total value to £257m.

Planning approvals surged in the West Midlands, climbing 55x year-on-year to £1.1bn, primarily due to the £1.1bn Frasers Campus in Coventry.

Glenigan is CN Intelligence’s partner for UK construction project data, market analysis and company intelligence.

Glenigan combines comprehensive information gathering with expert analysis to provide intelligence on all construction sectors, including private and social housing, education, health, hotel and leisure, industrial, infrastructure, offices, retail, and utilities, and across all regions of the UK and Ireland.

Find out more: www.glenigan.com