Property & Construction Market Review – July 2018
The world of Property & Construction has undergone a significant change in the way it operates in recent years. The strict lines between specialisations are disappearing, whilst organisations become much more fluid in what they do. Peter Hardy, Managing Director at psd, reviews the Property & Construction sector’s performance in the first half of 2018 and looks at the trends that are creating a shift in the Property & Construction landscape.
Affordable Housing now influences every residential development scheme, whilst investors and developers are getting their heads around exactly what PRS (Private Rented Sector) actually is.
Traditional commercial and mixed use developers focus on imaginative leasing, better tenant management, whilst pouring over data analytics and market research, all the while enhancing their technological capability.
Private equity investors and financial institutions look not only at traditional UK and Pan-European Property investments, but now look across the world for opportunities. Financing for these investments is increasingly complex to both originate and structure.
Reflecting these trends, Property Services and FM Providers have expanded their expertise dramatically and are now influential across the whole sector in a way that could not have been conceived just a few years ago, whilst construction companies are now truly international.
Against this ever shifting backdrop, psd continues to adapt in order to remain a leading provider of executive recruitment services to the Property & Construction sector.
At the end of the first half of 2018, the core theme of lingering uncertainty remains as the UK continues to transition out of the EU. The Property & Construction market has not distinguished a clear path forward and so many investors err towards low risk strategies. There remains a good demand for prime assets and income streams that are secure. Industrial property is the current flavour of the month but also major investors are, for the first time, looking at investing in build to rent residential opportunities as a way to create the type of returns that are required. It is always important to stress that UK property still offers comparatively strong returns and lower risk and this will underpin demand from both within the UK and overseas.
The UK Government has put housing at the centre of its policy which should provide a platform for innovation, presenting interesting options for developers, not to mention investors. Demand for private rented properties will inevitably increase, whilst the lack of supply in affordable housing will need to be addressed. The solution for the latter will likely only be found if there is substantial investment from both private and public sectors, a scenario that is unlikely to happen in the next few years.
As ever, imaginative investors and developers are keen to progress in different directions, always seeking to be one step ahead. Logistics, flavour of the month in 2017, remains to be of considerable interest to private equity and institutional funds. The change on Britain’s high streets will see more offices and residential properties in central locations, whilst retail operators are trying their level best to withstand the radical changes occurring in their markets. All the while FM Providers are working with occupiers in order to provide the best working and living conditions.
The demand for psd‘s executive recruitment services in the first half of 2018 has been strong. The backdrop remains that there are always opportunities and plenty of organisations are making things happen. However there are organisations that are waiting patiently before they consider their next development or investment project. We are expecting similar demand going into the second half of 2018.
At psd we have been recruiting Board, Senior Management and Executive Director Level within the Property & Construction sector for a number of years. Our team of highly experienced recruitment consultants have an exceptional knowledge of the Property & Construction sector and a strong network of candidates, with track records of achievement in this and allied sectors. We recruit across the whole of the UK and work on both permanent and interim roles and operate in most functional disciplines.
We would be happy to meet at your convenience to discuss your recruitment requirements and are happy to offer our knowledge on salary expectations, general market intelligence, and other recruitment queries.
Peter leads psd's work in the Property & Construction sector. He recruits senior and board level positions in development, construction, fund management, private equity, property services, PRS and affordable housing.
He is also Head of psd's global HR practice, recruiting senior and board level positions across all sectors.