Commercial property construction lasting the pace

Commercial property construction continues to defy gravity, despite the fall in business investment and an uncertain economic outlook, according to the latest Royal Institution of Chartered Surveyors (RICS) UK Construction Forecast for 2003/4 published today (Thursday).

Commercial new building is forecast to rise by 1% in 2003 and fall by 3% in 2004.

Public sector construction continues to rise strongly due to government spending on housing, schools hospitals and infrastructure.

New public housing is set to rise by 6% in 2003 and 4% in 2004 following an estimated rise of 21% in 2002.

The longest manufacturing recession since the war has unsurprisingly led to a slowdown in industrial construction which looks set to continue through 2003.