The report, Construction Market Intelligence (CMI), highlights a steady market with increased bid opportunities in the public sector, particularly in education, infrastructure, and repair and maintenance projects. However, the lack of infrastructure investment in water and sewerage systems remains a concern, impacting project delivery in Belfast.
The Irish government's commitment to spend £675 million on Shared Island investment priorities, including transport infrastructure, is already benefiting Northern Ireland. While planning approval timescales remain consistent, the current planning system requires policy changes to support renewable energy targets.
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Tender pricing has stabilized recently but is expected to increase in the short term due to inflationary pressures. In the long term, a stable upward trend is forecast, with local spikes caused by the chronic skills and labor shortages.
The report also focuses on specific sectors:
• Education: The education pipeline is growing, with projects like the shared education campus at Ballycastle gaining momentum.
• Healthcare: The NHS is prioritizing maintaining and retrofitting existing assets.
• Infrastructure: Preliminary works have begun on the A5 North-West road link, and rail extension projects are being considered.
• Public and Civic: Belfast Region City Deal investment has been unlocked for tourism projects.
• Residential: Social housing funding has been reduced, but there is interest in student accommodation development.
• Retail: Refurbishment of existing assets remains the focus, with a spike in fit-out costs.
• Sport: The redevelopment of Casement Park is still pending, but investment has been secured for other Irish Football Association projects.
Noel Devine, RLB Partner in Northern Ireland, commented on the report: "The restoration of devolved government will boost development opportunities in Northern Ireland. Collaboration between the public and private sectors will be crucial in addressing housing shortages and improving economic outcomes. As the region strives to meet its net-zero carbon targets, green building practices will become increasingly important."
