The building industry is expected to grow by 15% this year despite the blows of Covid-19 and Brexit.
But a 2% increase in costs are set to be passed on to the consumer.
An annual review tomorrow by consultants AECOM predicts impressive expansion levels.
While construction output is unlikely to reach pre-pandemic levels, it will significantly exceed 2020 levels.
While 2021 has got off to a bad start for the industry, the report anticipates a strong year on a presumption that normal activity will resume as the vaccine roll-out continues.
In general terms, it says demand has been delayed, not abandoned.
As the trade agreement between the UK and EU is only just implemented, the report suggests access to materials and other equipment has been unaffected by Brexit to date.
AECOM spokesman John O’Regan said: “Despite the challenges associated with the dual impact of the Covid-19 and Brexit, the projected growth rate of 15% for 2021 highlights the industry’s resilience.
“While the first lockdown was very difficult, as an unanticipated event, the sector is now more prepared to effectively manage the challenges related to materials, cost and logistics.
“That being said, hospitality and retail has been put on hold and, while significant commercial office developments are proceeding on site, the uncertainty around the shape of the future office workplace will slow demand in this sector.”
The report also suggests, while the country is dealing with two threats to supply chains, the price inflation for 2021 will be higher than 2020, reporting at two percent.
Mr O’Regan added: “This is very positive news for the industry and for consumers as there was considerable anticipation that the cost of building would climb sharply.
“A key element of promoting sustainable growth for construction is ensuring promised rail projects such as the Dart Expansion and Metrolink progress as planned.
“It may not seem a priority now, we must double down on our commitment to rail.”
