In the Modern Building Supplies magazine, June issue, there is an article that looks at gauging the trends in the UK air-conditioning market.
The article outlines that it is the rise and fall of projects nearing completion that causes the rise and fall of building-services products.
The market in 2016 was quite variable, as summarised below:
• Office new-build sector was down, especially in the key London market.
• Completions in the retail new-build sector were also lower than expected.
• Office refurbishment held up and saw the same level of completions by value compared with 2015 throughout the UK and the key London market.
• Hotel new build and refurbishment increased by completions.
• The residential tall-towers sector in London saw an increase in the number of buildings completed.
In 2015, the market performed as expected.
For completions in 2016, the situation changed as tenant demand decreased (1) for office new build, caused by global economic trends and then Brexit. Plus availability of stock increased, which was caused by the high number of new starts by floor space in 2013 and 2014.
All of this was happening against the backdrop of business-rates increases in 2017. Developers did not want to complete jobs, as they only get three months' business rate relief for a vacant property, so practical completion dates were pushed back (2). The trend is that the construction cycle is extending. Retail new build saw the same trend.
So the expected rise in completions in new build in new build in 2016 did not happen.
Read the full article here: http://www.modbs.co.uk/news/fullstory.php/aid/16987/Gauging_trends_in_the_UK__air-conditioning_market.html
