Introduction

Part 2 of Davis Langdon’s Cost Update reviews projects in the private sector. Sectors such as residential and commercial have previously been an industry powerhouse, but the recession has seen a steep fall in activity in most aspects of the private sector. The slump was led by the residential and industrial sectors in 2007, with commercial opportunities also drying up in the second half of 2008.

Opportunities for developers are constrained by a lack of demand for space, poor viability and a lack of available project finance. On a brighter note, some retailers are continuing to roll-out formats, even if this is at a slower rate than in previous years.