What’s in store in ’24? Leading industry figures give their forecasts for the next 12 months. Part three

BE News asked some of the biggest names from across the built environment to share their thoughts on the challenges and opportunities ahead. In the third and final instalment, industry experts give their predictions for 2024:

Maria Wiedner

Chief executive, Cambridge Real Estate Finance

In an economic context, the main challenge will be addressing the bleak outlook for UK productivity and ensuring that property values can regain momentum as inflation and interest rates subsides. This requires tackling structural bottlenecks, such as the housing shortage and our obscure planning system. Operationally, I am interested in observing how the commercial property industry will more widely adopt the discounted cash flow valuation method and how it will help our valuation professionals to gain a deeper understanding of the economic and financial drivers of property values. It would be beneficial if valuers began discussing the relationship between yields, inflation, rental growth, interest rates and even consumer sentiment when assessing values and this can be done through a DCF. Lastly, but equally importantly, we need to address the demographic issues in our industry. Diversity, equity, and inclusion should be better monitored and reported. The challenge lies in having more role models; for instance, men taking their share of parental leave, women being promoted to executive boards and companies slashing their gender and ethnicity pay gaps.

James Craddock

Managing director, UK, SEGRO

Looking ahead into 2024, there appear to be some signs of stabilisation in the macro-economic environment with inflation coming back under control, and this should hopefully lead to a more supportive interest rate environment for property investment markets. Occupier demand has remained healthy for the most well-located and modern warehouse space and although vacancy rates have ticked back up towards more normal levels, a reduction in construction starts should keep future supply in check and provide a positive backdrop for further rental growth. Sustainability will continue to both be an opportunity and a challenge as real estate owners work towards net-zero carbon and strive to meet occupiers’ present and future needs to deliver lower carbon operations all within a constantly evolving political and legislative environment.

Brendan Geraghty

CEO, UKAA

Capital markets appear to be becoming more positive, talking up an improvement in conditions driven by inflation coming under control and a reduction in interest rates. It will however take time for this positivity to translate into an uplift in deals and project starts. The regulatory environment remains very unpredictable, and we expect to see tension between the build to rent sector and policymakers due to a lack of understanding of build to rent and the implications of some of the proposed policies. Housing will be a key issue in a general election, and it will be important for organisations such as the UKAA to build understanding across parties and policymakers of the economic and social value of build to rent in regeneration and unlocking delivery of much-needed quality new homes. There must be investment in key areas, especially planning with the aim of making it less costly, and more predictable.

David Carter

Chairman, Sandyford Properties

Construction cost inflation, cooling occupational demand and increased debt costs will limit development activity until the capital value side of the equation corrects and developers become more confident again. Existing stock will benefit from this reduction in new competing property. While the timeline for optimising property energy efficiency appears to have eased, at some point this will have to occur. Whether that’s led by building regs or EPC remains to the seen. Those organisations that work out a profitable EPC solution within their capex strategy will have an edge in the market. AI was arguably the greatest game changer in 2023 and the coming years will see it have increasing influence on the speed of data assimilation and the depth of its interpretation. Being on the right side of this change will super-charge a firm’s strategic growth plan.

Richard Adamson

Partner and auctioneer, Allsop

2024 will be all things to all people. Some will see the stabilisation of interest rates as the certainty they need to resume deploying capital. Others will see one of the biggest years in global electoral politics and think they need to wait to see what happens. What it means either way is that there are sizeable opportunities to be had for those who can be opportunistic in their strategies – particularly for equity investors but also, increasingly, for those using debt. Some of the most compelling opportunities will continue to be in the sub-£1m market, which has demonstrated its depth and liquidity in 2023. Income-producing assets (such as HMOs and individual buy-to-let investments in attractive locations) will be particularly appealing to investors, creating opportunities for vendors. With stable (and, eventually, falling) financing costs, more buyers will be in the market and, for assets priced sensibly, vendors won’t struggle to sell.

Dan Mason

Managing director, Realm

The robust outlet sector remains a compelling investment choice, with assets across the sector continuing to perform well. The turnover lease model plays a significant role, with the collaborative and dynamic approach to asset management allowing landlords to adapt swiftly to evolving customer preferences. From a retailer perspective, brands are continuing to prioritise outlet in their omni-channel strategies, and increasingly exploring the ‘flagship’ experience. By significantly elevating their visual merchandising and in-store aesthetics, brands are blurring the lines between outlet and full-price experience to meet growing consumer expectations and growing economic confidence. The influx of new shoppers, which we expect to continue into 2024 and beyond, is a major driver of redevelopment and asset management activity both in the UK and Europe – as more first-time outlet shoppers, as well as shoppers from younger demographics, make intentional choices about quality and value.

Simon Morris

Managing partner, GCW

2023 defied gravity and many of the headwinds – particularly cost of living and interest rates – only began to bite towards the tail end of the year. 2024 will be a year of two halves – a challenging start with these pressures continuing, however, a recovery and growth being seen during the latter period. Our predictions include: the return of some occupier insolvencies where their model is no longer relevant – the combination of a stretched customer and debt side pressure will force an insolvency with little chance of rescue;  resilience in luxury and beauty in particular – a combination of visual competition on social media fuelling consumption, the ongoing availability of unregulated by now pay later consumer credit and the impression that certain luxury goods are tangible investment pieces will keep these segments buoyant; and an increased focus on wellness – a growing sub-sector is the holistic fitness approach, where in addition to physical training the offer is augmented with dieticians, physical therapy including cryotherapy, performance coaching and cognitive and behavioural psychology. The drive for self-improvement, studying and sharing of data has driven demand for these services which are already extensive across the US.

Lindsay Taylor

UK head of delivery, Deepki

There is uncertainty ahead for the European real estate market in 2024. This uncertainty is forcing some players to change strategy, reposition and sometimes even shift to a new business altogether. However, one factor remains constant: the need to ensure property portfolios align with the ESG agenda, specifically that they reduce their carbon footprint and meet the industry’s net zero targets. We have seen concerted effort from the real estate market to understand their buildings’ environmental impact and appreciate the possibility of negative financial outcomes from properties with poor ESG credentials, including brown discounting and stranded assets. 2024 will be the year that we start to see stakeholders take positive action to improve their portfolios’ credentials through retrofitting or even purchasing underperforming buildings and bringing them into line with environmental standards as a potential investment opportunity. This will also be the year we see ESG data evolve in the real estate market to further inform how the sector positively contributes to the green transition.

Guy Windsor-Lewis

Chief executive at Locale

Staying relevant and competitive is by far the biggest challenge for anybody in real estate. For owners, the main challenge will be to attract tenants who have shifted to hybrid working, and for occupiers, it will be to engage and retain workforces where face-to-face meetings are rare and developing a workplace culture is far trickier. Cafés, restaurants and bars near commercial and financial centres will need to devise a plan to adapt to the new ways of working to ensure they can sustain their businesses.However, a changing landscape also opens up opportunities for agile landlords. It will be the coming-of-age for mixed-use schemes, especially those with good connectivity and the right mix of residential, office and retail property.

Oscar Brooks

Executive director, Moda Group

This year, I believe we’ll see ESG certification playing a greater role in design process and investment strategies and become a key decision-making factor for residents when choosing a place to live. For the customer, the lines will continue to blur between product type and service levels, from student to co-living, BTR and family homes, with brands competing to own more of the end-to-end experience. People want and deserve more. After a slower investment period in 2023 and rapidly increasing costs, over half the world’s population will be sent to the polls in the biggest election year in history, and this will have significant influence on capital sources and supply chain. Politically, the Building Safety Act risks creating another significant barrier to entry, further restricting supply for renters and homeowners alike, and more needs to be done by government to support the industry and the emerging financial impact this will have.

Simon Green

Head of business rates, Gerald Eve

This year, many businesses will face the biggest annual increase in the basic multiplier for more than 30 years due to the chancellor’s decision to increase the large UBR by 6.7%. The Non-Domestic Rating Act 2023 also paves the way for new duties to inform and notify, which are likely to be challenging for ratepayers. On a positive note, the new relief for buildings that are undergoing improvements that will impact their rateable values is being introduced from 1 April 2024 – subject to detailed qualification criteria. As the government has now committed to a three-yearly revaluation cycle, the next revaluation in 2026 isn’t far away and 1 April 2024 represents the valuation date on which the evidence to inform the 2026 assessments will be drawn. All within an expected election year, it will be interesting to see how prominent business rates reform is when the manifestos are published.

James Whidborne

Head of fund management residential UK, Edmond de Rothschild Real Estate Investment Management

The challenge is the obsolescence faced by the office and retail sectors and the risk this creates for the decay of our urban fabric. The development industry is being hit from all angles, whether it’s demand drivers such as an increased focus on fire safety and ESG and a weakening investment market or supply challenges such as the shortage of labour, inflation and the increasing cost of capital. With sovereign debt at an all-time high, a state-funded building programme is out of the question. So, with that perfect storm, how do we breathe post-Covid life back into our towns and cities? How do we build more homes? The opportunity is that the UK is emerging from a decade of fog created by political instability and infighting, caused by Brexit, Scottish Independence, HS2, a series of hung parliaments and coalition governments and a series of tax reforms (ATED, SDLT reforms etc) designed to discourage overseas investment. In 2024, I believe you will see the UK regain its safe haven status. This is amplified by the emergence of the living sector. Although an established asset class in mainland Europe and the US, it is still very much an emerging opportunity in the UK. This offers an exciting early mover advantage on top of an improving macro-economic picture.

Debra Yudolph

Founder and CEO, SAY Property Consulting

The prevailing uncertainty in the economy, coupled with imminent elections, an onerous planning system and uncertainty over fire safety requirements has resulted in many of our clients taking a cautious approach, leading to project delays and stalling progress. The challenge lies in mitigating these uncertainties to foster a stable environment for delivery, because the UK must deliver more homes. Many advisers including SAY have benefited from these more challenging times because as our clients become more cautious, they need more advice to support their decision-making process or to run a rule over their existing investments. There are promising growth opportunities on the horizon. I believe that the prospect of an improving economy, buoyed by reduced inflation, interest and mortgage rates, will fuel optimism, especially within the living sector. It will hopefully be the impetus needed to revive stalled projects, injecting life into the housing industry. Moreover, improving market conditions will create more openings for build-to-rent markets (multifamily and single family), where we are very active.

Darren Hutchinson

Head of UK real estate transactions, Barings

It might seem incongruous to say that the UK office sector is facing its greatest ever set of challenges while remaining deeply optimistic about its prospects – but that’s precisely our view. The existential challenges the office faces, from the rise of hybrid working to the costs of financing and construction, can lead to opportunities: in the form of the increased need for best-in-class, highly sustainable workspaces near transport hubs in central business districts, designed and developed to meet the needs of the workforce of today. In 2024, challenges of liquidity and viability of construction will remain. More buildings will run the risk of obsolescence, with some less well-capitalised investors facing refinancing challenges. However, for the office sector and our other preferred real estate asset classes – prime logistics and residential – we believe this will present a buying opportunity.

Michael Beckerman

CEO, CREtech

We have seen a tremendous flight to quality in markets all over the world. Tenants are willing to pay to relocate to the most modern, sustainable, amenity-rich and technologically-savvy properties. Whether it’s One Vanderbuilt in New York or 22 Bishopsgate in London, landlords that think like hospitality companies will emerge as the biggest winners. Tech in particular will be in greater demand as real estate companies seek to lower costs, operate more effectively and attract occupiers. Will it be the year of AI in proptech? Not just yet, but it will dominate every aspect of the built environment very soon. Finally, the biggest challenge and opportunity: climate. To decarbonise the built environment, it will cost an estimated $20trn. The industry can be THE catalyst to address the climate crisis, as well as gain from investments in climate technologies. There is nothing wrong with advocating both ‘purpose and profit’.

Simon Tothill

Property and development director, Robert Hitchins

Outlet retailing consistently proves its resilience and enduring appeal both for shoppers seeking quality and value to maintain a desired lifestyle for less, and for brands looking to enhance their multichannel strategies. For Cotswolds Designer Outlet – one of the few new outlet schemes on site this year – we’re confident in our strategy of balancing a premium feel for the guest experience, with flexibility for brands to optimise their offer and prioritise customer engagement. New outlet schemes will be defined by their location and ability to tap into underserved markets to meet the growing demand for retail tourism and day out experiences.

Dean Clifford

Co-founder, Great Marlborough Estates

With so many secondary and tertiary offices no longer fit for purpose and having little tenant demand, vacant office space could provide a good opportunity to boost housing supply moving forward. However, planning policy also needs to allow for swifter changes. While conversion is not without important considerations, including residential space standards, a relook at some of the wider barriers would be beneficial to release potential future housing stock. For example, it would be good to see a review of the minimum marketing time for office buildings, which can be costly and time consuming and often means buildings are empty and redundant for prolonged periods of time. The UK needs more homes and looking ahead, the growing supply of vacant offices could offer an alternative route to delivering much-needed high-quality homes – but in order for this to succeed, it needs to be the right developer with the right expertise, supported by the right planning policy.

Charles Owen

Head of asset management, Regent Street, The Crown Estate

With the West End’s mix of world-class amenities, excellent transport links and best-in-class office stock, the 2023 trend of pre-lets in the area is likely to continue in 2024. This is due to high levels of demand, coupled with tight supply, leading to companies securing sought-after space much earlier than in previous years. The challenge facing us is to meet this demand by providing sustainable best-in-class space. The Crown Estate is therefore investing in a programme of refurbishments and developments to deliver high-quality, sustainable buildings in some of the most desirable locations in London.

Stuart Leslie

International sales and marketing director, Barratt London

London’s desirability as a place to live, work, study or invest is showing no signs of waning. The city is poised for a period of growth with a limited supply of new build properties and continued demand for investors seeking high rental returns. Along with offering steadily improving public transport, it is also a truly unbeatable region for entrepreneurs, so there is no better place to look for real estate in 2024. Regardless of the ups and downs of the economy, buying real estate in the capital has always been a reliable long-term investment – over the past 30 years, it has compounded 9% each year, while in the past nine years, the average London home has seen an increase in value of 45%. CBRE has predicted additional growth of up to 5.8% in regeneration areas compared with nearby areas lacking the same investment. This growth is even more pronounced in the regeneration areas that are Barratt London’s locations of choice.

Karen Charles

Executive director, Boyer (part of Leaders Romans Group)

2024 will inevitably be dominated by the general election and if the politics of the previous year is a reliable indication, housing will be one of the key battlegrounds. The fact that housing and planning were notably absent from the government’s last party conference is a strong indication that bold measures aimed at boosting housing are not a priority. Labour, on the other hand, is determined to bring about more development, more affordable housing, more new towns and potentially more green/grey belt release. The forthcoming minimum of 10% biodiversity net gain on all new developments is positive and will create quality new developments. The problem is when the requirement has a detrimental impact on viability and the lack of suitable offsetting opportunities prevents schemes from being delivered. I am confident that solutions and opportunities for mitigation can be found, but I am concerned that they are not all yet in place.

Darragh Hurley

Managing director, Mount Anvil

2023 was a challenging year for housing. The number of homes on major planning applications between April and June 2023 declined by 41%, compared to the previous year. 2024 needs to be a year of housing delivery with even more urgency. And partnerships is the way to do this. It was in close partnership with local authorities and housing associations that we continued to deliver on our pipeline of 4,000 high-quality and affordable homes across London’s estates last year, and 2024 should be no different. I hope 2024 is a year for more widespread appreciation and recognition of the importance of a safe, warm home to peoples’ wellbeing and to a functioning, just society.

Robin Dobson

Group property director, Network Rail

Great progress was made last year. We unlocked multiple strategic development opportunities alongside boosting customer experience across Network Rail Property. We will build on this momentum through 2024, by continuing to deliver at pace and scale. Mixed-use commercial-led property will be central to our plans as we create new communities, drive infrastructure investment and enhance our customer destinations. Delivering through strategic partnerships will accelerate this growth and our destinations will continue to evolve as we enhance the quality and breadth of our offer. Network Rail Property is the largest owner of brownfield infrastructure-led sites. In 2024, this journey will continue as we become partner of choice for regeneration schemes across the UK, putting local communities at the forefront of the continued transformation of transport hubs.

Zoe Brooke

CEO, Save Construction

The plight within construction continues. Without being a pessimist, we are still regurgitating the same challenges that we have faced for years, and I am not sure there will be a reprieve just yet, or not at least until money can be grown on trees. Many of the discussions in the marketplace revolve around payment and how organisations are holding money in between clenched fingertips resulting in cashflow issues for the supply chain. Specialist subcontractors are expected without an agreement to bankroll their clients and I hear often how excruciatingly difficult it is to be paid fairly or promptly. In the same vein, retentions are rarely received and more akin to a unicorn. This continues to jeopardise the stability of the industry and insolvency persists causing greater challenges for the industry such as resourcing: attracting and retaining a skilled workforce and clients being able to manage or account for inflated costs associated with the trades available. Planning issues are still the talk of the town and the time it takes to get a project live is still a protracted process. All disciplines have muted their anguish at designing at-risk and the extreme lengths that they must go to whilst still “in competition” to win a contract award.

Colin Brown

Head of planning and development, Carter Jonas

At the launch of the revised NPPF, I was encouraged by the greater certainty that it will provide. Governments might be expected to bide their time as they approach a general election. Alternatively, they could become more radical in their position. But Gove did neither. After almost a year of uncertainty, we finally have some direction, even though some elements appear to be flawed. Counter to expectations, the government has not completely given into the NIMBYs. In retaining the standard method as a starting point in assessing housing numbers, reasserting the 300,000 homes target, retaining the housing delivery test and requiring urgent action plans in strategic planning, the secretary of state has sought to demonstrate that he is committed to growth. He even went as far as to declare himself a YIMBY! Blockages do remain of course, but the government appears to have determined that there are votes in facilitating, rather than blocking, development.

Arnaud Loiseau

CEO, Redpin

The story of the global residential market has been that of high interest rates. Looking back over 2023, rising interest rates and the resulting increase in mortgage rates cooled the market. In the UK, house prices were down 1.8% on 2022 levels and in Sweden, prices fell by 11.1% year on year. However, there have been bright spots – Portugal saw overall price rises of 7.9% in the year to November 2023 and Alpine resorts held up well across countries. Overall, the global property market has been far more resilient to rising interest rates than anticipated. So, what about the year ahead? The latest news is encouraging, with the market calling earlier interest rates rate cuts. While we expect a turbulent year ahead for the international property market, we are confident that the lure of bricks and mortar will hold fast.

John Clements

Executive director, Verdion

We see significant growth potential in the UK’s logistics markets, with 2024 offering a strong buying opportunity for the true sector specialists. Alongside the iPort multimodal hub near Doncaster, we’re concentrating on urban markets where demand for logistics space is strongest, usually building speculatively and typically securing suitable development land through the regeneration of infill and brownfield property. Here, there is a clear opportunity for asset-level value creation close to major population centres where the supply-demand imbalance continues. We take a very selective approach, assessing the genuine depth of leasing demand for each location, with a site’s suitability robustly measured both against occupier requirements and wider environmental and social considerations. There should be an onus on adding value to these locations. Maximising capacity and embedding features that increase efficiency and sustainability should be factored in from the outset, with new development designed to knit holistically into the surrounding areas.

Amy Chen

Chief innovation officer, KONE

Mega shifts relating to urbanisation, sustainability and technology are having a huge impact on our cities and the flow of people day to day. Artificial intelligence is a game-changer and is increasingly becoming part of our everyday lives, at individual, business and city level. The transition from smart machines to those with AI elements is seeing ‘cognitive intelligence’ creating an interactive loop of observing, learning and making more informed decisions, enhancing the way we live, work and experience the world around us. Quality data is key, so we will likely see commensurate advancements in fields such as digital twin, IoT and big data, leading to huge changes in how buildings and cities are built and managed. Citizens will interact with the built environment in a more personalised and efficient way. Similarly, business with enhanced AI-driven products and processes will gain a competitive edge. At KONE, this is boosting our ways of working and accelerating our ability to produce prototypes and build predictive maintenance solutions, for example, resulting in efficiencies and improved experiences for our customers.

Dan Westley

Leasing director, Battersea Power Station Development Company

In 2024, we expect to see an increase in the number of leasing deals completing as occupiers commit to space following extended negotiation periods throughout 2023. Demand remains high for new state-of-the art buildings that have access to excellent amenities, green spaces and strong transport links, and occupiers will need to move quickly to secure the most sought-after spaces. The location and environment is as important as the quality of the building itself. Access to public realm, restaurants, entertainment and health and wellbeing venues rank at the top of occupier requirements, with companies willing to broaden their geographic search to find offices which meet these criteria. At Battersea Power Station, the combination of world-class design and being located within an amenity-rich estate with more than 140 shops, bars, restaurants and leisure venues, as well as strong transport connections, appeals to everyone, whether you’re a one-desk operation to the largest company in the world.

Charles Walford

Property director and head of life sciences, Stanhope

Focusing on the life sciences sector, a key challenge to overcome in 2024 is the severe mismatch between the demand and supply of lab space. In particular, there is an incredible lack of space for science companies in their early stages, an issue that is especially acute in London. In response, we have recently commenced construction of circa 30,000 sq ft of new grow-on labs at White City Place – these are specifically designed and equipped for expanding life sciences companies. This year, we are also progressing opportunities across the Golden Triangle to assist in meeting the unique needs of the life science community.

Dan Rees

Co-head of UK offices, Trammell Crow Company

The increasing pressure from lenders through 2024 will help bring about the right market conditions for a price correction that has been held up by reluctant sellers. Removing the wait-and-see option from the market provides opportunity, and this will also be the case where assets have upcoming capex requirements that cannot be met. Many core investors in London are approaching a cliff-edge, ill-prepared from a skills and capital perspective, with what was once a ‘four cheque a year’-asset now requiring tenant engagement and significant investment. Historically, core-plus capital has acquired assets requiring light touch capex and asset management. However, with the need for greater intervention (due to ESG requirements and build cost inflation) and increased debt costs, this capital has withdrawn from the office market. This will present the opportunity to create significant value lower down the risk curve, subject to the right stock selection.

Emma Mansell

Head of Design District at Greenwich Peninsula

The creative sector is officially London’s third largest, after finance and real estate. Each year, the sector contributes around £115.9bn to the wider UK economy, and yet the reality for many creatives and creative businesses is neither positive nor optimistic. Uncontrolled rents, lack of quality, fit-for-purpose facilities and reductions in funding are continued challenges hurled at the sector, and unfortunately this is set to continue into 2024. The latest City Hall research showing one in five London jobs is in the creative industries should be enough for us to realise the sector’s worth. Coupled with the government’s £77m pledge of funding, there is hope yet for us to take creative businesses and their workspace seriously. One such space doing just this is London’s Design District, which is a purpose-built community for creatives, providing inspiring and practical workspaces. London and the UK is a rich, cultural hub and it’s about time we leveraged this to assert our position on the global stage.

Dan Green

Partner, Tri7

The challenges and opportunities for the built environment in 2024 will largely depend on whether the Bank of England decides to unlock investor confidence through lower interest rates, or opts to hold steady. With rates having plateaued at the end of 2023, the expected slow and steady drop through 2024 should spark some levels of investor confidence, increasing transaction volumes. This will hopefully lead to downward pressure on yields in the right sectors. Bed-led assets will continue to be the most attractive in terms of real return generation, and our focus will be on PBSA and BTR opportunities in city centres.

Mark Hoffman

Investments director, Prideview 

With many financial experts predicting that interest rates will fall in 2024, possibly to 3% by the end of the year, we think that there is every reason to feel confident about investing in commercial property in 2024. The high street remains buoyant, with many new overseas retailers looking for representation in the UK – a sign that London remains an economic stronghold. With employees exploring different models of working, demand for both regional and city centre offices continue to grow, albeit on more flexible leasing terms. Yield and covenant remain key factors for investment in 2024. ‘Low risk’ investments such as convenience stores, vets’ practices and medical centres will still be the most sought-after, as investors seek to take advantage of motivated sellers. A general election this year may affect investor sentiment for a few months, but if there is a change of government we’ll be looking out for any tax changes and how this could impact investments.

Richard Besant

Director at Powertech

The days of linear façade design are over: straight lines and sharp curves are out and smooth waves and seamless curves are in. Expect to see building fronts become even more ambitious in their scope, with more invisible joints between wall panels installed to create an alluring visual continuity, mesmerising the observer with uninterrupted beauty. Not only that, this feature-led cladding lends itself perfectly to powder-coating, which can easily match the required consistency, whether single-shade, two-tone or multiple colourways. In 2024, expect specifiers to deliver some of the brightest, boldest and most beautiful commercial façades to date.

Maria Hudson

CMO, Zutec

The 1st of April 2024 will see the transition phases of the Building Safety Act (BSA) end, with its full legislative and legal weight coming into force. While it will go a long way to addressing many longstanding issues around fire safety and building quality, many contractors, developers and asset owners remain unsure about how to comply with key aspects of the regulation. To help provide more clarity and prepare for the new regulatory landscape, best-in-class data management will be essential as the industry seeks to define a baseline building safety case – a key objective over the next 12 months. That’s only the start. Beyond the BSA, other incoming regulations, particularly around sustainability, will act as a catalyst for everyone in the supply chain to further digitise processes and get their whole-life building information in order. The good news is it’s never been easier to do so, and businesses can take advantage of an array of powerful technologies and solutions in the market to do this effectively and efficiently. Not only will this ensure holistic compliance, but having a complete data set to analyse will help construction businesses make more informed decisions, leading to better outcomes all round.

Zac Goodman

CEO and founder, TSP

For many 2024 will be the year of ‘cautious recovery’. Interest rates and cost inflation dominated our psyches in 2022 and 2023 and it feels as though the fog is beginning to lift. Commercial real estate showed significant resilience in the quality part of the market, with occupiers willing to part with more money for better space and amenity. This lurch towards ‘best in class’ will dominate the market as the message washes across the sector. This optimism will be tempered by the real economy, and whether the UKL consumer and business sector can hang in through to higher ground and lower interest rates – watch this space.

Matt Brown

Partner, Lewis Ellis