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December 05.2025
3 Minutes Read

Why Commercial Construction is Surging While Residential Lags Behind

Yellow construction helmet on site, symbolizing commercial growth.

Why Commercial Construction is Outpacing Residential

The construction sector is experiencing a notable shift, with commercial projects like offices and retail stores gaining momentum while residential construction struggles to find its footing. According to Glenigan's latest analysis, non-residential project starts surged by a staggering 15% year-on-year, contrasting sharply with the 4% decline in residential starts over the same period. This analysis is particularly important for property owners and investors who are keen on understanding where to allocate their resources strategically.

The Bright Side of Commercial Construction

Allan Wilen, the economics director at Glenigan, noted that despite the overall weakness in the construction industry, certain sectors, such as offices, industrial units, and social housing, are driving growth forward. For instance, office construction is leading this resurgence with a remarkable 56% increase from the previous quarter and a staggering 147% year-on-year. Major projects like the £85.9 million One Hanover Street office development in Mayfair highlight the renewed confidence in the commercial market.

Social Housing: A Ray of Hope in Residential Construction

Interestingly, while traditional residential construction has suffered, social housing has shown resilience, rising by 28% in just three months and 11% year-on-year. With the government focusing on affordable housing initiatives, this segment is likely to see continuous support and growth, presenting opportunities for investors and property developers committed to social impact.

Regional Construction Trends: A Tale of Two Markets

Geographically, construction activity has seen varied performance. The capital led the charge with an impressive 77% rise in construction starts compared to the previous quarter, pointing to high demand and significant capital investments in London. In contrast, other regions like the North East exhibited mixed results, with only a slight decline against the previous quarter but a notable increase compared to last year.

The Role of Government and Public Initiatives

The UK government has remained supportive of infrastructure growth. The assurance from the Chancellor regarding government commitments to capital projects is essential. As property owners and investors know, government cooperation can substantially impact the landscape of construction. The continued push for infrastructure projects means potential funding opportunities will present themselves, providing a much-needed boost amidst the fall-off in residential construction.

Opportunities Amid Challenges: What Investors Should Know

Investors should remain mindful of the contrasting trends in the market. While certain sectors like health, retail, and leisure might be lagging, sectors with government backing, such as infrastructure and social housing, should be prioritized. The construction market, although turbulent, shows signs of adaptability and resilience, paving the way for opportunities that astute investors can capitalize on.

Conclusion: A Positive Outlook for Commercial Opportunities

In summary, while the residential construction market faces challenges, the commercial sector's robust growth offers promising investment opportunities. Property owners and investors should closely monitor these trends, as the commercial construction industry's upward trajectory may signal favorable conditions for future projects. Engaging with this shift early can lead to lucrative prospects as the market continues to evolve.

For stakeholders looking to navigate this dynamic environment and invest wisely, staying informed about these trends is critical. The future of construction in the UK promises growth, and those prepared to embrace the changing landscape will stand to benefit significantly.

Property Pulse

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Transform Your Home This Winter with the M&S Supersoft Faux Fur Throw

Update Embrace Winter Warmth with the M&S Supersoft Faux Fur Throw This winter, as temperatures drop and our desire for cozy comfort rises, the M&S Supersoft Faux Fur Throw emerges as a leading choice for home enthusiasts and savvy shoppers alike. Priced at a manageable £29.50, this blanket not only promises comfort but also has catapulted into popularity, with many colors quickly selling out. Designed for those who treasure warmth and a touch of luxury, it’s no surprise that this throw has become a must-have item in countless homes across the UK. Why This Throw Has Everyone Talking With nearly 800 five-star reviews, customer feedback speaks volumes. People describe the throw as "super soft," "cuddly," and the perfect accompaniment to their winter nights. One satisfied customer remarked, "It’s like being wrapped up in cotton wool," highlighting how effective and comforting this throw can be during chilly evenings. Compact and elegant in design, it also comes in ten different color options, ensuring that there’s something to suit every taste and decor. Making Your Home Cozy This Winter The versatility of the Supersoft Faux Fur Throw is another compelling reason to consider it for your home. Whether draped over a bed for added warmth or placed on a sofa for those quiet movie nights, it seamlessly elevates any living space into a luxurious retreat. Imagine curling up with your family, sharing stories under this nourishment of warmth, fostering those delightful winter memories. A Wise Investment for Homeowners and Investors For property buyers and investors in Dumfries, the demand for cozy home accents and furnishings like these can indicate market trends favoring comfort and style. Such investments can not only contribute to a warm and inviting atmosphere but also enhance property value by appealing to prospective buyers’ desire for enactment of coziness amidst the raw Scottish winters. Other Cozy Options from M&S If you’re drawn to the M&S Supersoft range, you’ll be pleased to know that they offer more than just throws. Their collection includes matching scatter cushions, bolster cushions, and even electric throws designed for maximum warmth. For those considering gifts this holiday season, these fluffy items present an excellent value, as they strive to embody luxury at an affordable price. The Experience of Shopping at M&S Shopping for these throws is simple and user-friendly. M&S also provides free standard delivery on orders over £60, making it easier for you to stock up on those winter essentials or perhaps to curate gifts for loved ones. Furthermore, if you can’t decide which color to choose, rest assured that M&S offers quality assurance, ensuring that your purchase arrives as an asset to your home. Conclusion: A Call to Action for Cozy Living To wrap up, investing in the M&S Supersoft Faux Fur Throw means embracing a winter full of warmth and coziness. It’s more than just a comfy accessory; it’s an investment in creating a comfortable living environment that all homeowners and investors will appreciate. Don’t wait too long to grab yours—these trendy throws are disappearing fast! Explore the collection today and secure your warmth for the season ahead!

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