Building Information Index 2024: 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 +35% across all sectors compared to 2023.
- Granted permissions: Down -10%.
- New applications: Up +4% on 2023 (down -39% compared to 2022).
Sector-specific findings:
- Residential: Positive short-term outlook due to high commencements, but weaker grants and applications point to a medium to long term slow down.
- Commercial & Retail: The outlook is negative for the commercial & retail sector in 2025.
- Medical: The outlook for the education sector is Neutral with similar activity expected throughout 2025.
- Education: Neutral outlook due to stable funding and pipeline despite a decrease in applications.
- Agriculture: The outlook is neutral for agriculture.
- Industrial: Strong commencements tempered by a drop in applications points to Neutral outlook.
- Social: Positive outlook due to strong demand and increases in applications and grants, but commencements decreased slightly in 2024.
Additional notes:
- The average time from application to commencement is 78 weeks across all sectors.
- Major spike in residential commencements fuelled by the decision to extend the waiving of local authority contributions for projects commenced by end of December 2024
- Regulatory factors may be influencing investor and developer confidence. Material costs and labour shortages are ongoing challenges for the industry.
While the industry is still performing well, especially in terms of commencements, the coming months will be critical in determining whether recent trends are temporary fluctuations or signals of a more significant shift in the sector.
Click on the image to open/download
