Invest now to prepare for the future

Property owners need to start planning for the future despite the headwinds buffeting the real estate sector today.

London financial district with Royal Exchange and Bank of England
(Image credit: © Getty images)

The global commercial property market is at something of a crossroads. On the one hand, stringent planning conditions and high materials costs are having an impact on construction volumes. On the other hand, many of the biggest cities in the world are struggling to build enough homes and high-quality, fit-for-purpose offices. There is also growing demand for sustainable buildings with a low carbon footprint and infrastructure to support the transition to net zero.

Rising interest rates are only increasing the challenges for developers and owners. The cost of borrowing to fund new projects has jumped significantly over the past two years without including the rising cost of building.

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