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21 October 2011
The GVA Building Cost Update report provides a timely reminder of the continuing impact of the economic downturn on the construction industry. Twelve months ago, development activity (and hence construction activity) in the commercial, industrial and residential sectors was increasing, albeit from a very low base, on the back of a modest increase in capital values. However, with weaker economic growth and static capital value increases, this increased development activity has ground to a halt. With a weak economic and property market outlook, and with development finance still severely constrained, it is unlikely that there will be much change in the amount of development activity over the next year or two.
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