The past couple of years have been highly challenging for developers as a result of a variety of factors, including soaring construction costs – up to 20% since 2020 – as well as ongoing issues with the planning system, weakening exit values and the higher cost of finance.
Development in parts of the market, such as London residential and regional offices, virtually ground to a halt as schemes became commercially unviable. This year also looks set to be taxing, with the impact of the war in the Middle East yet to be determined.
However, prior to the conflict, construction cost inflation had levelled off and the cost of money had eased. So there is room for cautious optimism when it comes to certain sectors and subsectors.
Industry experts came together for a debate sponsored by Maples Teesdale and Smart Spaces to evaluate where the key opportunities lie, where challenges remain and how developers can overcome the latter to unlock the former. To read a write-up of the event click here.
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