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99% of developers made changes to their business strategy in the past year

Property developers have faced continued uncertainty, stemming from rising costs, high interest rates and a challenging economic environment. However, despite tough conditions, nearly every developer has managed to change tact and diversify their strategy. 

Half (49%) of developers are turning towards using different materials to reduce costs, and the same number are exploring new areas and regions to build in. 48% are also planning to build new property types in order to diversify their developments, and 38% are planning to invest in new technology. 

When asked why they are changing their strategies, nearly a third (31%) of developers are doing so to meet current demand in the market. 29% are making changes to expand their business, and the same number are altering their strategies to improve profit margin. Thinking about key challenges over the next 12 months, developers cited rising costs as their biggest concern (26%); followed closely by rising mortgage rates (25%) and rising material costs. 

Terry Woodley, MD of development finance at Shawbrook, commented: “Developers have faced an array of challenges and continued market turbulence over the past year. However, our research shows that developers have remained agile and resilient and have implemented changes to navigate their businesses through recent uncertainty.” 

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