Build Cost & Programme

31 January 2017, by James Kelway

Build costs and programme delivery time scales have had an upward pressure throughout 2016

 

■ The latest indicators from the recently launched Savills ProgrammE and Cost Sentiment Survey (S.P.E.C.S) demonstrate that build costs and programme delivery time scales have had an upward pressure throughout 2016.

■ Given the fact that occupier demand is so strong and skewed towards the build to suit market, along with strong developer demand for speculative units. Savills Building & Project Consultancy are seeing build costs increases in the following size ranges; 100,000–200,000 sq ft at £42–£48/sq ft and 400,000–600,000 sq ft at £33–36/sq ft.

■ Into 2017 we expect this upward pressure on costs to increase as the price of imported raw materials rises and a lack of contractor availability increases labour costs.

FIGURE 26

Build cost and timescale sentiment

 
Figure 26

Source: Savills S.P.E.C.S

 

placeholder

Key Contacts

James Kelway

James Kelway

Director
Building & Project Consultancy

Savills Margaret Street

+44 (0) 20 7409 8977

 

Kevin Mofid

Kevin Mofid

Director
Commercial Research

Savills Margaret Street

 

Subscribe to Savills research

 

Would you like to be notified via email about new research?