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The London cost consultancy firm Exigere has stated that it expects a surge in construction projects next year due to a gradual increase in investor confidence.<\/p>\n\n\n\n

In its updated report for the fourth quarter of this year, the company noted that “investment conditions are becoming increasingly favorable.” At the same time, the firm added, “Project development is recovering, albeit at a slower pace compared to pre-recession levels.”<\/p>\n\n\n\n

The company emphasizes that London remains the leader in the commercial sector. Agencies forecast growing demand in both the City and the West End by 2025. Moreover, activity is also observed in towns across the East and Southeast of England.<\/p>\n\n\n\n

However, despite the gradual improvement in investor confidence, Exigere highlights that the UK\u2019s low GDP growth and the Bank of England\u2019s anticipated interest rate cut continue to limit overall optimism.<\/p>\n\n\n\n

The company also warns of risks associated with the financial stability of the supply chain, noting that “the threat of supplier insolvency remains a significant risk to timely project delivery.”<\/p>\n\n\n\n

The report states: “The past 18 months have been a real test for the construction supply chain, and trust in this sector has been significantly shaken. Fixed-price contracts combined with inflationary shocks create a toxic combination for a low-margin industry where cash flow is critical.”<\/p>\n\n\n\n

Additionally, Exigere highlighted other challenges, such as legal disputes over poor work quality and misguided strategic decisions by companies attempting to enter new markets without sufficient expertise.<\/p>\n\n\n\n

Despite this, the company predicts a gradual increase in the tender price index: 2.5% this year, 3% next year, and 3.5% in 2025, signaling cautious yet steady industry growth.<\/p>\n\n\n