London’s construction outlook brightens

London’s construction sector is poised for a resurgence, with office developments leading the charge.

According to Glenigan’s latest research, 127 office projects—each valued at up to £100 million—have secured detailed planning permission and are set to break ground within the next 12 months. A robust pipeline of major schemes, including 35 high-profile office developments, signals strong growth ahead for the capital’s commercial construction market.

Approved major office schemes in this short-term pipeline include the £400 million Dovetail Building in the City of London (Project ID: 21354221). An amendment to the design has been approved, tenders have been returned, and construction is expected to begin by the end of this year.

Contractors have also returned bids for the £120 million Barkers of Kensington office scheme in west London, where a construction start is expected this spring (Project ID: 22157233).

Life sciences rise

Deloitte’s latest Crane Hire Survey for London covering Winter 2025 also suggests that an improving outlook in the capital’s office sector is driving optimism for the future.

Like Glenigan, Deloitte recorded a drop-off in 2024, due in part to delays, with 25 office new starts to provide a total volume of 2.4 million sq ft.

Although workload weakened in London, activity was boosted by a rise in life sciences developments.

Glenigan’s construction industry intelligence has identified a number of these major life science projects set to give the industry a boost.

Work is due to commence this summer on the Department of Health’s proposed £182 million Whitechapel Life Sciences District in east London, which has detailed planning permission (Project ID: 21391404).

A £170 million Life Sciences Office in King’s Cross (pictured) also has indicative permission and once formally confirmed, construction should also start this summer (Project ID: 24112398).

London Top 10

A swathe of major office and commercial projects helped Multiplex Construction Europe win the most work in London in the 12 months to January 2025 according to Glenigan’s market research.

Multiplex amassed nearly £1.4 billion worth of work including the £500 million Project Vista to redevelop the former London television centre on the south bank of the River Thames (Project ID: 9140477) and the £480 million 50 Fenchurch Street office and retail scheme in the City of London for AXA Investment (Project ID: 19410738).

Second placed Morgan Sindall also benefitted from rising commercial work at fit-out business Overbury, which helped push the group’s orders in the capital above £1 billion.

Overbury’s jobs included a £144.7 million refurbishment of the 2 Broadgate office complex for A&O Srearman (Project ID: 24309677) and a £90 million fit-out of 1 Leadenhall Street for Latham & Walkers (Project ID: 24187976).

Third-placed Mace has amassed just short of £1 billion worth of work in London over the last 12 months with the commercial sector again a key driver.

Mace’s workload included the £215 million One Fairchild Street office and retail development in Hackney (Project ID: 15215532) and the £200 million 65 Gresham Street mixed scheme in Westminster (Project ID: 22373407).

Rising capital prospects

With investors’ appetite for office and commercial developments growing, the prospects for the capital look set to progress.