UK Winter Market View: December 2024

Stuck in the middle

The latest Market View report paints a challenging picture for the construction sector as it grapples with economic headwinds and sector-specific hurdles. Highlighting increasing viability challenges in residential markets but better prospects in regulated sectors like water and energy, the report reflects on a mixed outlook for the industry. While some areas are gaining momentum, others remain stalled, underscoring the complex dynamics shaping the construction landscape.

UK Winter Market View: December 2024

Arcadis’ latest UK Market View report acknowledges the uneven recovery across the construction sector. While regulated utilities and public sector investments offer some optimism, viability issues and increasing costs weigh heavily on sectors like high-density residential developments. The result is that our tender price forecasts for 2025 and 2026 have been amended to reflect the wider disparity between sectors as growth ramps up.