Northern Ireland

Overview

Project-starts and main contract awards both performed poorly against the previous year. More positively, detailed planning approvals increased against both the previous year and preceding quarter.

Underlying work (less than £100m in value) starting on-site during the quarter to March fell 43 per cent against the preceding quarter on a seasonally adjusted (SA) basis, the value fell 23 per cent compared with last year’s levels to total £318. No major projects (£100m or more in value), commenced on-site during the period. Overall, the value of project-starts in Northern Ireland fell 7 per cent compared with the preceding quarter and 46 per cent on the previous year.

Main contract awards totalled £371m during the period, a 17 per cent increase on the preceding quarter but a 50 per cent decline on 2022 levels. Underlying contract awards added up to £221m, a 30 per cent (SA) decrease against the preceding quarter and a 48 per cent decline compared with last year’s levels. Major projects reaching the contract awarded stage during the period totalled £150m, an increase from the preceding quarter when there were no major contract awards, but 53 per cent down on a year ago.

Totalling £697m, underlying detailed planning approvals in Northern Ireland increased 33 per cent (SA) against the preceding quarter and 49 per cent compared with the same period a year ago. No major projects were granted approval, unchanged from the preceding quarter and last year.

Sector Analysis – Project-Starts

Private housing project-starts, accounting for 40 per cent of the total value, despite this the value decreased 41 per cent compared with a year ago to total £126m, the highest value among all sectors in Northern Ireland.  Infrastructure experienced the sharpest decline of any region, here the value of project-starts decreased 96 per cent to total £8m.  

At £98m education  was the second most active sector in the region, the sector experienced triple-digit (+173 per cent) growth against the previous year. Education accounted for a 31 per cent share of the total value, with the value boosted by the commencement of the £48m development of the “St Ronans College” in Lurgan (Project ID: 06333889)

Value of project-starts in Northern Ireland during the quarter to March 2023 by sector

Sector Analysis – Detailed Planning Approvals

Private housing at £285m was the most active sector for detailed planning approvals during the quarter to March, accounting for 41 per cent of the total value. The value of private housing consents increased 81 per cent against last year’s levels and included the approval of a £30m, 43-unit development in Ballymena (Project ID: 20206139). Industrial accounted for a 18 per cent share of project approvals during the period, with the sector experiencing 48 per cent growth against last year’s levels to total £125m.

Office approvals experienced the sharpest growth, having more than tripled compared with a year earlier to total £50m. The sector accounted for 7  per cent of the total value of approvals during the period. In contrast, social housing detailed planning approvals fell 58 per cent compared with a year ago to total 263m, accounting for 4 per cent of the total value.

Value of project approvals in Northern Ireland during the quarter to March 2023 by sector

Forecast Construction-Starts for Northern Ireland

Note: Underlying projects are schemes with a construction value of £250,000 to £100 million.  Forecast updated in April 2023 p – provisional, f – forecast.
Source: Glenigan