What are the effects of the increase in social construction around new developments?

Upscaling the immediate areas of a residential area, such as bringing in retail or commercial areas will increase in value which will benefit the developer. 

Another visible shift that we are seeing is the decrease of “high-end” products being promoted and more mid-market, high volume projects taking their place, as there is a shortage of available housing. This shortage of housing has also caused an increase in the overall value of properties, making it harder for young professionals to get on the property ladder. “Help to buy” schemes have been introduced to combat this difficulty for first-time buyers. 

Property developments that create a unique and inviting social space for customers are becoming increasingly common. The retail industry has been changing rapidly and many businesses have struggled with the current market, however, we have equally seen many niche businesses thrive. The benefits that specific developments have had and can have, by creating a diverse social space, is that customers will enjoy spending time and money in those locations. Many companies involved with regeneration schemes have been incorporating innovative retailers in their projects that appeal to the current population.

We have seen a growing focus on developing spaces that create a sense of identity and place, with this there has been a change in the demand for certain skills and experience in traditional development roles with a stronger focus on amplifying the social experience in most new mixed-use, regeneration schemes. This has implied that developers will be seeking advice from more external consultants who will be able to support them in identifying the criteria specific to a location which might depend on the local affluence.

We may think that new roles are being created to manage the social aspects of new developments, and so far we are noticing that developers are putting a lot more attention and details in the projects they are putting in the market. A lot of the requirements would be covered by the current skill sets available. However, we can assume that there will be a stronger focus to work more towards more sustainable schemes as well as being able to engage more with local councils and boroughs to understand what the communities actually need to further develop that area.

There has been a shift in what developers are working towards in the current market, and how they are doing this. Developers are focusing on the longer-term happiness and wellbeing of the communities they are creating. If a company is able to build a self-sustainable community then the customer will feel that they can live, work and socialise in that area alone, and allow for further development of the neighbouring locations. The more successful they can be at achieving this, the happier the residents will be. This is also providing job opportunities in the same area, due to the increase in commercial and retail units. All of these elements will help to upscale the value of the territory that is being developed. 

Employers may be looking at ways to best prepare their teams for such changes in the development industry. Accepting the changes in market demand is essential, if adaption doesn’t take place then they would risk falling behind the curve of some of their competitors. 

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Director, Michael Page

T: 020 7269 1746

E: albertogalli@michaelpage.com