CrowdProperty: Property developers bullish on 2025
Property developers are optimistic about growth in 2025, according to a new survey of developers and investors by CrowdProperty.
The property lender’s Autumn 2023 Developer & Investor Index found that 67 per cent of developers plan to maintain or increase their project plans for the upcoming year, with 86 per cent predicting a busy 2025.
90 per cent of the investors surveyed said that they intend to expand their portfolios by 2025, while more than two thirds (67 per cent) plan to maintain or expand their portfolios in the year ahead.
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However, CrowdProperty noted that there has been a decrease in building intentions since the last quarter, which signals potential caution amidst an exit slowdown.
The platform also found that developers are still navigating challenges in planning and site acquisition, with 30 per cent saying that planning policy is a primary concern this quarter, up from 13 per cent previously.
Furthermore, both developers and investors are bracing for a short-term dip in house prices, with recovery expected to take place over a three-year span.
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“While the previous quarter brought a more positive outlook regarding house prices, recent data signals a more cautious stance, albeit not as pessimistic as winter 2022,” said a CrowdProperty spokesperson.
“With expectations of interest rates stabilizing around five per cent in the short to medium term, and the market pricing of government debt surging, national debt interest has hit a 20-year high this October, prompting a cautious outlook.”
11 per cent of investors said that an economic recession is their top concern, up from six per cent last quarter.
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