Real Estate 360°

Despite economic volatility and access to funding being cited as top barriers to investment, optimism is growing across the sector – with many respondents feeling positive for what the next few years bring. While 2023 highlighted the remarkable resilience of the industry, we should see a rebalancing and recovery in investor activity in 2024.

With the UK housing market gripped by a supply and demand imbalance, it’s clear to see why the living sectors will see the most investment growth throughout 2024. Familiar patterns are continuing, with investors choosing the safe havens of certain regions. Meanwhile, there is ongoing concern around office and retail spaces, and the majority of respondents predict an increase in distressed assets this year. 

Strong and quantifiable green credentials are fast becoming no longer a nice to have, but a prerequisite to accessing funding, as lenders act as a driving force towards net zero. Technological barriers and government announcements have caused delays, however businesses who can forge ahead with ESG strategies will be in a stronger position.

The buzz around generative AI has been felt across all industries. And though real estate and construction are later to the party, with concerns remaining around quality and control – many have plans to invest in this technology throughout 2024, expecting to see significant returns. We expect a laser-like focus on data collection and insight to drive best use of new incoming technologies.