Lower building costs lift office starts

Commercial property developers are backing David Cameron's call to get Britain building again, according to a new report.

The construction of new offices in London has increased by 44pc compared with last year, aided by lower build costs, and is now three times greater than its lowest level three years ago.

The rise in construction has been identified in the latest crane survey by property services group Drivers Jonas Deloitte, which measures the amount of space under construction through the number of cranes on the skyline.

The Coalition sees construction and investment in infrastructure as a key path to economic growth for the UK.

According to the DJD survey, 9.2m sq ft of office space is under construction in London, 28pc more than six months ago. The projects under construction include the Walkie Talkie skyscraper by Land Securities and Canary Wharf Group and the Cheesegrater by British Land (LSE: BLND.L - news) and Canadian group Oxford Properties.

Anthony Duggan, head of research, at DJD, said: "While construction continues to rise in the core City and West End markets, our research also shows that activity has returned to King's Cross and the Docklands, as well as a further increase in activity along the Southbank. This is a sign that developers feel that the low levels of construction compared to historic trends and lower building costs are compelling."

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Lower building costs lift office starts