As property prices collapsed due to the effects of the credit crunch, 2009 saw the construction and development sector braving the worst crisis it has seen in years.
The scars of the downturn may be seen for years to come, as both big and small names in the business have suffered, with firms like Chase Midlands, Regal Executive Homes, Wrekin, and William Ashley shutting shop. Other companies have had to put pipeline projects on hold as they wait for improved economic conditions.
Drivers Jonas conducted its 2009 Birmingham Crane Survey and reported that while 21 projects began in 2008, only six new construction projects have commenced within the last 12 months. Since the 2008 survey, three out of the six projects have come to a halt. These are the second stage of Masshouse, the hotel work and residences at Snowhill, and the second part of
Recent reports also reveal that the demand for Birmingham office space fell by 1 million square feet in 2009, as opposed to last year, which explains why the survey reported only two office projects this year. However, desk space rental at least remains a profitable factor within this market sector - click for rent desk info - and major renovation work at the New Street Station, the Library of Birmingham, and the Jewellery Quarter public square is expected to lessen the blow, inject stability and stimulate the construction market, once it gains momentum in 2010 or 2011.
