A new survey from consultant Drivers Jonas has found that seven schemes got up and running this year – a rise of 17 per cent on 2007’s figures.
The news reflects the lack of top quality office space in the city and the consultant said one scheme will finish this year and the remainder in 2009.
Andrew Kubski, partner at Drivers Jonas in Scotland, added: “With extremely low levels of available Grade A stock, these buildings should be a welcome addition to the city.”
But he warned: “They come at a time of slowing occupier demand. If demand continues to be subdued developers many begin to struggle given the current levels of construction. The acid test of the strength of the Glasgow office market will be whether the speculative schemes find tenants.”
And the report said that new residential starts in the city has nosedived by more than half with 57 per cent less projects getting off the ground than last year.
Mr Kubski said: “Expect to see even fewer residential schemes starting on site over the next 12 months as developers take stock of the changing market conditions.”
The survey said that retail was holding up and added that the city continues to be a lure for major retailers. It said: “Despite the concerns across the UK of lower consumer spending, there remains an appetite by retailers to be located in the prime retail area of Glasgow.”
It added that despite a shortage of hotel space in Glasgow – thanks to its emergence as a conference destination – just one hotel scheme was under construction.
But it said hotel space was “much needed” and added: “Do not be surprised if we see a handful of new schemes under construction in our survey next year.”