![\"Edinburgh](\"https:\/\/www.europesays.com\/uk\/wp-content\/uploads\/2025\/09\/Edinburgh.jpg\")
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NEW research from construction and property management consultancy Rider Levett Bucknall (RLB UK) has reported a \u2018mixed\u2019 short-term outlook for Scotland\u2019s construction market, with education, residential, and infrastructure showing growth while healthcare is constrained by a lack of investment.\n<\/p>\n
Edinburgh remains a focal point of activity with major schemes progressing including Leamington Square, New Town Quarter, and the redevelopment of iconic buildings such as the former Jenners department store and Granton Station.\n<\/p>\n
Scotland\u2019s construction pipeline continues to be \u2018robust\u2019. The residential sector is busy with headline developments including Western Villages in Edinburgh, which is set to become Scotland\u2019s largest operational net zero housing development. Timber-framed residential remains a key delivery focus.\n<\/p>\n
The RLB research also found that projects are increasingly aligning to sustainability and net zero principles. Cerulean Winds\u2019 UK\u2019s offshore renewables grid includes the 1GW Aspen project, one of the world\u2019s largest offshore wind farms in the North Sea and the Ardersier Energy Transition Facility in Scotland. The Eastern Green Link 2 \u2013 a 505km subsea electricity superhighway \u2013 will enable power transfer between Scotland and England.\n<\/p>\n
Significant public sector investment is \u2018flowing\u2019, with rising demand for high-quality, modern commercial and industrial spaces.\n<\/p>\n
Tender prices are forecast to rise broadly in line with general inflation over the next year, with steady increases rather than the sharp uplifts seen in recent years. This contrasts with the wider UK picture, where softer order books are driving \u2018tighter, more competitive\u2019 bidding and increasing downstream delivery risk.\n<\/p>\n
Construction input costs in Scotland rose by an average of 4.65% year-on-year to Q2 2025 and 1.25% on the quarter (source: BCIS). The recent National Insurance contributions rise has not yet translated into a spike in labour costs.\n<\/p>\n
RLB added that costs for timber, cladding, insulation, and metal-based and cement-based products have increased, though trends vary by package and specification.\n<\/p>\n
Martin McConnell, partner, RLB Scotland said, \u201cThe sector will welcome further Scottish Government initiatives that support the industry, particularly around public procurement, sustainable business practices cand closing the skills gaps, which remain a key challenge. With strong pipelines in education, residential and infrastructure, a focus on net zero delivery, and pragmatic procurement strategies, Scotland is well placed to sustain construction activity into 2025.\u201d\n<\/p>\n