UK Interior Refurbishment and Fit-Out market worth over £7bn

The interior refurbishment and fit-out market in the UK was worth an estimated £7.1bn in 2013, according to a new report published by AMA Research. Having endured a period of significant decline in value terms since 2009, it now seems as though the market is on the road to recovery, with growth in 2012/13 estimated at 2-3% per annum in value terms, and forecasts for 2014/15 more optimistic as demand gains momentum.

Factors stimulating the market include an increasing focus on major refurbishment and fit-out projects in the commercial sector – particularly in London - as newbuild activity remains constrained as a result of continued caution among developers in many parts of the UK.

The retail sector represents a major end use sector, accounting for around 20% share of the market value, whilst commercial offices represent the largest sector overall. During 2013 a more sustained recovery was seen in the commercial office market, with take-up and investment returning to levels not seen since the start of the economic downturn, particularly in London but also in some regional centres.

Though many retailers in the retail sector have scaled back their development programmes, more stable market conditions are encouraging the continuation of refurbishment and expansion plans in some sectors, such as the grocery sector where there is a switch to more convenience stores, providing impetus for market growth.

“The outlook for the interior refurbishment and fit-out market in the medium term is positive, with a number of major developments expected to come through in the office l sector and an increased focus on refurbishment work across all sectors” said Andrew Hartley, Director of AMA Research. “Re-branding and upgrading programmes announced by the budget hotels, value gym, cinema and grocery retail sectors will also create continued opportunities for fit-out and refurbishment contractors.”

The report estimates that the market will see annual growth rates of around 4-5% over the next 3-4 years, to reach a value of over £8.5bn in 2018.

The ‘Interior Refurbishment and Fit-Out Market - 2014-2018 Analysis’ report is published by AMA Research, a leading provider of market research and consultancy services within the construction and home improvement markets. The report is available now and can be ordered online at www.amaresearch.co.uk or by calling 01242 235724.