Are you a property developer making your first steps in the industry? Are you curious about the upcoming trends on the market but are not sure where to start looking for them? If all your answers to these questions were positive then you’ve got great news for you - you’ve come to the right place!
Recent years have shown us that no matter how hard we try, there is no such thing as being fully prepared for any occasion - and COVID-19 is a perfect example of that. What we can do however is focus on the present day and analyse the market’s up-to-date tendencies that will indicate the direction of where the industry is heading.
To help you better understand the industry and its current situation, we decided that the best option would be to gather all this information in one place and present it in the form of an article. So, here we go!
First things first - what does it actually mean to be a property developer? Let us explain: developing a property is all about reviving a neglected building back to life. Property development, also known as real estate development, is the process of developing buildings or lands in order to raise their value.
Property development consists of various elements, such as building a property from scratch, renovating an already existing one or converting a property to serve a different purpose to what it used to be.
We do not even realise how much of our surrounding is created by property developers: offices, hotels, homes - you name it! Their work is crucial when it comes to adapting to sweeping changes in our environment overtime.
As with every market, we can definitely observe some tendencies and upcoming trends that will be shaping the future of this industry. Some of them are more significant than others but all in all, you should be familiar with all of them. Let’s have a look then:
Build to Rent
The whole purpose of property development is of course adding value to the property or land. Thanks to this, a property developer can then increase profits from such developments, namely sell for a higher amount.
Buying a residential property to renovate for either sale or rental is probably the most common tactic you will find within this industry. It’s also a great starting-point for those who have just begun their journey in the property development business. Why so? It goes back to your own experience with home-buying and renovations, which in a sense makes you an expert in this field.
Connectivity & Wellness
More and more, we are experiencing a huge attention being drawn to the promotion of the wellbeing of the building’s occupants. According to Olga Turner Baker of Ekkist, such a measure adds value to a property: “Generally, research shows a premium of 10 to 15%, but it can be as high as 55%.”
We could call legacy design the mother of reinvention as ageing businesses turn to it in order to stay ahead of the competition, in this rapidly changing world. When it comes to property developers, they will do everything in their power to keep up the pace and stay relevant, hence why we will be seeing a huge spike in property development companies turning to legacy design agencies for help.
Modern Methods of Construction (MMC)
MMC, also known as smart construction, centers around the use of off-site construction techniques. It is also described as a process of producing more and of better quality, in less time. Modern Methods of Construction therefore include hybrid techniques combining panellised and volumetric approaches, floor or roof cassettes, precast concrete foundation assemblies, volumetric construction for the production of three-dimensional modular units off-site and much more.
Repurposing/ Mixed Use
You might as well purchase an existing property with a view to repurposing its original use. Let us elaborate on that: the vast majority of developers is focused on a specific type of property use, be it residential or commercial. Now, the difference between the two is that the latter refers to really any kind of building that has so far been used for business purposes, like offices or factories, while the first one alludes to residential properties, such as houses or flats.
Repurposing in this context means then converting a commercial property to residential or the other way around. However, you may have already encountered mixed-use developments that incorporate both commercial and residential areas at the same time. How? It’s really easy: you can have a residential development with a commercial aspect, for example a block of flats with a small grocery store located on the ground floor.
Zero Carbon Footprint
As the government has announced the promising plans of cutting the UK’s carbon emission to 78% by 2035, we will be witnessing many drastic changes in various fields, construction included. This is why reducing carbon emissions will be on every property developer’s agenda.
And there you have it! Hopefully now, you know what to expect on the property development market in the next few years. If you want to explore this topic even further, make sure you subscribe to our Blog! We will be sharing even more articles on property development in the upcoming days!
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