As we move into 2024, the property development sector is expected to witness several key trends and shifts.
Here are seven outlooks that are likely to define the landscape of property development in the coming year.
There is a turning point in the UK real estate development sector.
Developers face a wide range of opportunities and problems because to the urgent housing scarcity, changing consumer preferences, and growing environmental restrictions.
The UK has had difficulty meeting the demand for housing in recent years. Just 233,000 new dwellings were delivered in 2021 and 2022, significantly less than the 300,000 annual target.
These difficulties have been made worse by elements including the COVID-19 epidemic, supply chain interruptions, and growing expenses.
In addition, economic consequences from events like Brexit and Russia’s invasion of Ukraine has increased labour and supply costs for builders and developers.
1. Emphasis On Sustainability And Green Building Practices
Sustainability is no longer a buzzword but a necessity in property development.
In 2024, more developers are expected to focus on environmentally sustainable practices, emphasizing energy-efficient designs and the use of sustainable materials.
This shift is not just about reducing carbon footprints but also about meeting the growing consumer demand for green living spaces.
2. Technological Advancements In Construction
The integration of technology in property development is set to reach new heights.
From the use of AI and machine learning in design and planning to the deployment of drones and robotics in construction, technology will play a pivotal role in making developments more efficient and cost-effective.
3. Urban Regeneration And Revitalization Projects
Urban regeneration will be a key theme in 2024. Cities are looking to reinvent themselves by transforming underutilized urban spaces into thriving residential and commercial areas, thereby boosting local economies and improving community living standards.
4. Rising Demand For Affordable Housing
The affordable housing crisis continues to be a pressing issue.
2024 will likely see a concerted effort from developers and governments to address this through innovative housing solutions and partnerships aimed at creating more affordable housing options.
5. The Growth Of Mixed-use Developments
The concept of mixed-use developments that combine residential, commercial, and leisure spaces is gaining traction.
These developments are not just about convenience but also about fostering community engagement and offering a more integrated lifestyle.
With a decrease in landlords selling their tenanted properties (compared to 12 months ago), the rising mortgage rates and running costs, still haven’t put UK landlords off the mixed-use developments
6. Adaptive Reuse Of Historic Buildings
There’s a growing trend towards repurposing and renovating historic buildings for modern use while preserving their unique architectural elements.
This approach not only saves resources but also keeps the historical essence of cities intact.
7. Focus On Health And Wellness In Design
The health and wellness of occupants are becoming a key consideration in property development.
In 2024, expect to see more properties with features that promote physical and mental well-being, like green spaces, wellness centers, and designs that enhance natural light and air quality.
In 2024, the property development sector is poised for transformative changes that blend sustainability, technological innovation, and community-centric approaches.
These trends reflect a broader shift in societal values towards responsible and inclusive urban development, promising a future that’s not only architecturally advanced but also socially conscious and environmentally sustainable.
The government may have withdrawn the deadlines of 2025 for private rentals with a minimal EPC rating and 2028 for all rentals, but in September the House of Lords thwarted its proposals to loosen nutrient neutrality regulations.
It’s possible that the removal encouraged home builders by easing regulations and cutting down on planning delays.
Nutrient neutrality was stopping the construction of up to 120,000 new homes annually, or half of all planned new home development, according to the Home Builders Federation (HBF), a spokesperson for the industry.
Nutrient neutrality is important, but so are other green initiatives like switching from gas boilers to heat source pumps and taking electric vehicle (EV) concerns into account.
Charge stations for electric vehicles are already a common feature of many new residences.
Recognizing The Use Of Energy Performance Certificates
EPCs provide a thorough evaluation of a building’s overall energy performance and indicate how energy-efficient it is.
The EPC rating is quite influential when it comes to selling or renting a house.
Higher EPC ratings for real estate may draw in more prospective tenants or buyers.
The cost of heating and lighting a home decreases with its energy efficiency.
An EPC rating is good for ten years and usually goes from A (highest efficiency) to G (least efficient).
It is calculated by measuring the energy consumption per square metre and the annual production of carbon dioxide emissions in tonnes.
It will offer advice to the owner on how to enhance energy efficiency and raise the rating.