The United Kingdom construction industry is expected to perform relatively well in the coming five years, expanding at an average annual rate of 4.2 percent in real terms, according to Timetric’s Construction Intelligence Center. This marks a clear improvement from the average annual expansion of 0.5 percent recorded between 2010 and 2014. The industry is expected to increase from $184.7 billion in 2014 to $226.7 billion in 2019, measured in real terms at 2010 U.S. dollar exchange rates. 

Growth in the commercial construction market is expected to be driven by stronger consumer spending and business with growing demand for office space beyond London and the South East region. Meanwhile, residential construction is expected to maintain its 40 percent share of total market value, supported by investment in residential projects due to the United Kingdom’s shortage of housing units.