NEW research has revealed that Scotland’s construction market is expected to see workloads increase steadily over the coming years, supported by a strong pipeline of projects and a growing focus on sustainability and net zero objectives.
According to the latest regional market analysis by built environment consultancy Rider Levett Bucknall (RLB UK), improving economic conditions, including the prospect of interest rate cuts, could help strengthen investor confidence and support new development.
This is despite continuing challenges such as rising material costs, complex planning procedures, and skilled labour shortages, which will require collaboration between government and industry to attract new entrants while retaining experienced workers.
Martin McConnell, RLB UK partner based in Edinburgh, said, “The Scottish construction market is entering the year with cautious optimism. A strong pipeline of projects and increasing focus on sustainability and energy infrastructure are expected to support rising workloads over the coming years.
“Across Scotland, the market continues to prioritise refurbishment and repurposing of existing buildings over new-build developments. This shift is being driven both by environmental considerations, particularly the need to reduce embodied carbon, and by economic factors as developers seek lower-risk investment options in a challenging market.”
Contractors continue to favour procurement approaches that reduce risk, including two-stage tendering, negotiated contracts, and framework agreements. There is currently little appetite for single-stage competitive tendering.
Infrastructure remains one of the strongest sectors in Scotland’s construction market, with significant investment being driven by energy regeneration projects and improvements to energy distribution networks. Demand for commercial property has also begun to strengthen, with increasing occupier demand for both office and industrial space reported towards the end of 2025.
By contrast, the retail sector continues to face challenges as demand for retail space declines and rental expectations adjust to changing consumer behaviour.
RLB’s Tender Price Index (TPI) forecast for 2026 for Scotland is 3.5% compared with a forecast of 3.45% nationally.
