Construction costs to inflate by 14% in five years
Original Article Summary
It’s expected that building costs will increase by 14% over the next five years, the Building Cost Information Service (BCIS) has predicted. As such, tender prices should rise by 5% over the same period. There will likely be more activity, as total new work output is forecast to grow by 12% between 2026 and 2031. […] The post Construction costs to inflate by 14% in five years appeared first on PropertyWire.
PropMatch Curated Analysis
BCIS forecasts 14% construction cost inflation over five years, driven primarily by skills shortages and energy price pressures. This will significantly impact development viability and renovation budgets for property investors.
Investor Relevance
Critical for development appraisals, renovation budgeting, and new build acquisition decisions. Investors need to factor higher construction costs into feasibility studies and may need to adjust target purchase prices or consider alternative strategies to maintain returns.
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