Offices overview
- 161 per cent increase in project starts year-on-year
- 49 per cent decrease in main contract awards from 2024
- 60 per cent increase in detailed planning approvals compared to 2024
Office starts experienced a strong year in 2025, having grown 32 per cent against the previous year to total £9.055bn. Major project starts (£100m or more) grew 34 per cent, and underlying project starts (under £100m) grew 30 per cent. This growth was driven by an increase in new build and refurbishment projects. AI growth has also increased demand for data centres.
The pipeline, on the other hand, has weakened. Main contract awards and detailed planning approvals both fell 5 per cent against 2024.
Office planning approvals performed strongly in the three months to December, rising 317 per cent. Elsewhere, project-starts and main contract awards both declined on the period.
2026 outlook
- 13 per cent forecasted growth for project starts in 2026
- Advances in AI will likely continue boosting demand for data centres
- The Tech Prosperity Deal promises a £30bn investment to create an AI “growth zone” in the North East
Types of projects started
In line with the overall growth in the sector, all value bands experienced growth in project starts.
- Project starts in the over £100m value band totalled £4.201bn, having grown 34 per cent on a year ago
- The £20m to £50m value band grew 30 per cent year-on-year, totalling £1.51bn
- The £50m to £100m value band increased 30 per cent year-on-year, totalling £1.249bn
Regional
- Strong performance in project starts, with only two regions down against last year
- Most regions saw a decline in detailed planning approvals
- The East Midlands experienced strong growth in both project starts and planning approvals
London had by far the highest share (63 per cent) of project starts during the year, thanks to a 57 per cent increase to total £5.69bn. Totalling £847m, starts in the South East grew 32 per cent on 2024. Starts in the North West were 11 per cent up against the previous year to total £522m. In contrast, the East of England experienced a 47 per cent decline, totalling £627m.
Wales led detailed planning approvals in the office sector, having jumped more than 10 times year-on-year to total £5.078bn. Activity in the region was driven by the £5bn data centre development in Bridgend. At £1.594bn the South East increased 32 per cent against 2024 figures. London, on the other hand, fell 11 per cent against 2024 to total £5.259bn, despite the £2.5bn LON6, LON7 & LON8 data centre development.
Glenigan is CN Intelligence’s partner for UK construction project data, market analysis and company intelligence.
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