Corona Virus and Construction
Well, I thought about doing a blog on something other than Covid as the world grows weary of it dominating every area of our lives! Nevertheless after canvassing opinion here I am talking about Covid again, as it is a subject we just cannot ignore.
As a company we continue to be very busy with our clients, hence clearly construction continues apace and is showing significant resilience in an economic climate which is sadly decimating other sectors such as retail and leisure.
Why is that?
Well, as always it comes down to supply and demand. As a nation we still need more houses and apartments than are available – hence the push to build more. The relaxing of stamp duty has also played its part in galvanising the housing market. Our clients continue to build and to procure future sites, as well as breaking ground across the country on new developments. Great news for the residential side of the equation, but what about commercial?
Interesting to see the moves in that market, as already developers look to increase their portfolio of distribution warehouses and infrastructure – already a strong sector prior to Covid, this is expanding even faster and this trend is not likely to reverse. So, what are we seeing in city centres? Initially the first signs are office blocks with reduced occupancy and takeup, with the consequential hit on the retail/leisure sector in the immediate area. Already developers are looking at potential conversions from commercial space to residential, which looks to be a trend that is gathering pace and one I will keep my eye on.
Shopping centres are being hit hard and again I expect to see a major change over the next few years, which I suspect will sadly see a dip ahead of a change in direction. Rather than shopping destinations, will they become leisure hubs? Quite possibly.
All in all, construction is surprisingly strong and remains resilient – as of course it must be. If you are planning a newbuild or conversion and need Latent Defects Insurance or an Insurance Backed Guarantee, then get in touch – we will be happy to help.