A recent report from the Royal Institution of Chartered Surveyors (RICS) has revealed a notable development in construction workloads within Northern Ireland during the first quarter of 2024. After a two-year period, there has been an increase, albeit modest, in overall construction activities.
According to the latest findings from RICS, 4 per cent of respondents from Northern Ireland reported a rise in workloads. Broken down by subsectors, surveyors indicated growth across all private works categories, with a net balance of 21 per cent reporting an increase in private housing activity, 4 per cent in private commercial, and 19 per cent in private industrials. However, sentiments regarding public sector activity were less positive, with a net balance of -6 per cent noting a decline in infrastructure workloads, -32 per cent in public works, and stagnation in public housing projects.
Despite these challenges, surveyors expressed a degree of optimism about the future outlook. They anticipate a further increase in workloads, albeit with ongoing pressures on profit margins. Jim Sammon, RICS NI Construction spokesman, remarked on the resilience of the industry amidst various challenges, including skills shortages and economic uncertainties. He also welcomed the return of the NI Executive, highlighting its potential positive impact on infrastructure development and the region's journey towards achieving Net Zero emissions.
Simon Rubinsohn, RICS Chief Economist, echoed this sentiment, suggesting that construction activity is poised to improve throughout the year, particularly within the infrastructure sector. He noted cautious optimism regarding the residential segment, acknowledging the significant decline in supply but cautioning against expectations of an immediate return to previous development levels. Rubinsohn emphasized ongoing financial constraints and challenges in securing planning permissions as key obstacles facing the industry. Additionally, he highlighted the persistent difficulty in sourcing skilled labor despite the subdued trend in construction activity.
