Market forces including trade policy, labor shortages, and complex approval processes are among the top concerns of real estate development executives according to a report by Altus Group.
The Altus Group Real Estate Development Trends Report is based on a survey of real estate leaders around the world. The report says that 68% of respondents named cost escalation as the biggest business challenge they are facing over the next five years.
Other findings include:
· 65% are facing challenges with labor shortages, which are exacerbated by government policy and booming demand
· 60% are concerned about the development approval process which is often complex and protracted
· 34% view cross-border trade policy as having a negative impact on the industry as uncertainty continues regarding international tariffs and trade agreements
“It’s clear from the report that the global development sector is facing an increasingly complex set of challenges and rapid change, from escalating construction costs to a sea-change in the development financing environment,” said Bob Courteau, Chief Executive Officer, Altus Group. “However, development leaders clearly see significant opportunities to manage risk and take advantage of changing conditions through a number of future-ready strategies including investments in technology and performance management, along with consideration of new ways of managing and financing projects.”
Related Stories
Sponsored | Resiliency | Jan 24, 2022
Blast Hazard Mitigation: Building Openings for Greater Safety and Security
Codes and Standards | Jan 24, 2022
N.Y. governor calls for ban on natural gas in new buildings
Action follows New York City’s ban.
Codes and Standards | Jan 19, 2022
EPA may expand product lineup that can earn WaterSense label
Would include systems that enhance water quality at the tap.
Codes and Standards | Jan 19, 2022
Canada’s Trudeau seeking building codes changes, net-zero emissions building strategy
Prime minister also wants net-zero electricity grid by 2035.
Codes and Standards | Jan 18, 2022
Greater emphasis on building materials needed to achieve net-zero carbon offices
Engineered wood, straw, and bamboo can be keys to achieving goal.
Codes and Standards | Jan 17, 2022
AISC seeks comments on draft earthquake standard for steel buildings
Includes new limits for cross-sectional slenderness of steel columns based on latest research.
Codes and Standards | Jan 12, 2022
California’s wildfire building code significantly reduces structural loss
As other states consider upgrading their codes, Golden State provides useful model.
Codes and Standards | Jan 12, 2022
Regulator holding back climate-friendly, energy-saving equipment deployment, critics say
Heat pumps, solar power could be made more accessible for low-income communities in Massachusetts.
Codes and Standards | Jan 11, 2022
Cost hikes drive nearly one million renters out of homeownership qualification in 2021
Household income needed to pay a mortgage rose to $62,872 from $55,186.
Codes and Standards | Jan 10, 2022
New ratings services focus on climate risk for homeowners
Efficacy of models used in risk assessment varies.