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

01223 347277

 

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?