The latest edition of our London market report, ‘Embracing uncertainty to unlock viabilities’, is now available.
Read the digital version here.
Download the PDF version here.
This report explores how London’s commercial real estate and construction sectors are navigating a complex landscape marked by persistent inflation, economic headwinds, and cautious investment sentiment. With 2025 proving more subdued than expected, the industry faces critical questions around viability, pricing, and future opportunity.
Key insights:
- The shape of UK construction has changed, and so too have behaviours.
- Elevated costs are further pressured by continuing inflation.
- Sentiment surveys from the industry convey mixed messages, but demand is still positive.
- Teams must tackle viability issues, shifting from volatility to control.
With elevated construction costs further pressured by continuing inflation, as well as unfriendly financing conditions and softened yields, the most pressing issue on most projects is viability. The impact of this is an inability to meet the abundant demand for space.
We are currently maintaining our tender price forecasts for the forthcoming years at 3.0% in 2025, increasing to 3.5% in 2026 and 2027. As always, we will be closely monitoring supply/demand dynamics constantly.
For more information, please get in touch with one of the team:
Rachel Coleman – rachel.coleman@ttalinea.com
Kishan Patel – kishan.patel@ttalinea.com
Michael Cracknell – michael.cracknell@ttalinea.com
Mark Lacey – mark.lacey@ttalinea.com
Steve Watts – steve.watts@ttalinea.com
