Local construction, property and management consultancy, Rider Levett Bucknall West and Wales has issued its latest construction market intelligence (CMI) for Q4 2023 that reports that Wales is currently showing signs of stable economic activity, which is evident in the number of construction projects that are continuing. The three biggest cities – Cardiff, Swansea and Newport, continue to perform well.
The report also shows that there is a drive for new houses and apartments, meaning residential sites and planning consents are still being secured at pace. But this does not necessarily translate into starts, as developers landbank sites due to the impact of interest rates on the sale of private units and the viability of build-to-rent schemes.
The government’s decision to cancel the northern leg of the HS2 high-speed rail project could be of benefit to Wales as money is to be redirected to improve existing transportation links while also creating new rail lines and stations.
Planning consents remain strong. Most areas of Wales, however, are being impacted by extensive delays as planning departments struggle with staff resourcing levels. Pre-acquisition activity is still reasonably active, but with fewer detailed consents being worked-up at pace.
Jackie Pinder, Managing Partner, RLB West and Wales, said: “The stable levels of economic activity we are seeing in Wales is providing a solid foundation for construction industry growth. However, with the backdrop of wider economic uncertainty as to re-allocation of public sector funding, the forecast trend is really towards stability rather than further change. At RLB, we have been working on a number of major schemes with clients to ensure their viability in these uncertain times, including Cowbridge Road East in the heart of Cardiff, that will provide much needed affordable and sustainable housing.”
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Pic attached: COWBRIDGE ROAD EAST
This landmark scheme in the heart of Cardiff will provide affordable and sustainable housing. RLB has been working closely with the client and design team to ensure the scheme’s viability and expected completion in 2024.
For the full RLB Construction Market Intelligence report, please click here.