Building Information Index 2023: Highlights and Outlook
Overall: Positive short-term outlook, but concerns exist for the long term due to a decline in new applications, particularly in the residential sector.
Key Metrics:
- Commencements: Up 21% across all sectors.
- Granted permissions: Steady (1% increase).
- New applications: Down 41% (52% decrease in residential).
Sector-specific findings:
- Residential: Positive short-term outlook due to high commencements, but negative medium to long-term due to the sharp decline in applications.
- Commercial & Retail: Positive short-term outlook due to high commencements, but negative medium to long-term due to a decline in applications.
- Medical: Neutral outlook due to strong current activity but a weakening pipeline with fewer applications and grants.
- Education: Neutral outlook due to stable funding and pipeline despite a decrease in applications.
- Agriculture: Positive outlook due to increases in all metrics.
- Industrial: Positive outlook due to strong demand and increases in all metrics.
- Social: Positive outlook due to strong demand and increases in applications and grants, but commencements decreased in 2023.
Additional notes:
- The average time from application to commencement is 75 weeks across all sectors.
- The LRD scheme appears to be functioning more efficiently than the previous SHD scheme.
- Material costs and labour shortages are ongoing challenges for the industry.
Overall message: While current activity is strong, the decline in new applications paints a difficult picture for the future. More needs to be done to encourage and facilitate new projects, particularly in the residential sector.
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