The London refurbishment business is improving and the number of building projects is reducing according to a new report.
The fifth release of report ‘Interior Refurbishment and Fit-Out Market Report – UK 2014 –2018 Analysis’ shows what is the tendency in the refurbishment business and its final consumption.
This shows there is a certain trend of increasing success of the refurbishment sector – education, healthcare, offices amongst others, while there is a decrease in new building projects.
The Interior Refurbishment and Fit-Out market was assessed to have a value around £6.6 billion in 2011 and around £7.1 billion in 2013.
It has increased by two or three percent every year since 2011 and 2013, after which there is a period of certain regression.
The conclusions in the report and analysis are made based on the activity and actions of the main contractors, the basic players and investors in the refurbishment business in the United Kingdom.
All of whom control non-domestic buildings and estates.
There is a certain crisis in the refurbishment sector and especially in the new build market in the years 2009 and 2010, followed by a real recovery in 2011.
But the prognosis about the refurbishment sector in the 2012 to 2016 years are very positive.
The reason for that is that most private companies and public organisations incline to update and improve their estates and possessions to have more success and profit in their business.
The refurbishment market in the private and public sector are going through a very positive development, which is as a result of the lack of funds and wariness among developers to get involved in construction activities and projects.
In the private business a lot of clients in the retail, commercial and recreation sector are more inclined to invest in refurbishment and modernization rather than in new buildings because it is cheaper and easier.
In the public sector, the Government have taken measures in reducing the costs and this has incited investors to spend their money in refurbishment, home improvement or repair, modernization and restoration of already built estates rather than in building new ones.
The educational, healthcare and the local authority accommodation buildings have been modernized and refurbished.
But there is a certain delay in new constructions of schools, universities, educational centres, hospitals and healthcare centres, which is caused mainly by the lack of funds.
It is expected that in 2016 there will be a growing in the fit-out and refurbishment business and it is estimated that it will have the price of around £7.7 billion.
The big supermarkets have developed themselves in improving the convenience of the clients by offering online purchasing of goods.
And the commercial business is developing steadily and has shares of 27%.
It had recovered from the crisis it had been in during the economical fall and has reached such high levels, it had never achieved in the last few years.
London has remained as a leading centre of busy trade, while the number of other areas of active market has increased with time.
The delivery, interior refurbishment and the fit-out business hasn’t got many big national contractors.
There are a lot of small-sized and medium-sized companies functioning regionally or locally in London and in other cities.
In the last few years, there have been considerably fewer participants in the refurbishment and fitting industry.
Some of the bigger players in the market have stopped their commercial activity due to the bad market conditions of the time.
The perspectives for progress and growth of the refurbished and fit-out business are really good for the future years.
A lot of improvements in the retail sector are anticipated as a result of the increased reliance and credit of the users and the concentration on the refurbishment work in all the sectors.
Projects and programmes for modernization in hotels, fitness centres, cinemas and grocery retail department will also create work and employment for refurbishment executors.
Refurbishment turns out to be very successful and profitable business areas.
Research analysis and reports has estimated that the refurbishment sector is expected to have around four to five percent growth per year for the following three to four years and it will reach a value of around £8.65 billion in 2018 year.
The reasons are mainly the less funds and investments put in the activity as compared to building new premises.
Improvements and modernization seem to pay off and worth the capitals, invested in them.
Picture courtesy of Jim Linwood, with thanks