In the face of economic headwinds such as high inflation and rising interest rates, UK property developers are increasingly leaning on technology to future-proof their businesses, according to a recent survey by Shawbrook Bank.
The survey suggests that technology is playing a key role in helping developers stay ahead of market trends, identify new opportunities, and keep costs in check.
“Technology could soon become a key competitive differentiator in the market – particularly when it comes to understanding market trends,” commented Terry Woodley, managing director of development finance at Shawbrook.
Woodley further added: “With firms already experimenting with new technologies such as AI, and new use cases regularly emerging in the market, it wouldn’t be surprising to expect that this technology will have a much bigger influence on development trends in the years to come.”
The survey revealed a strong uptake of building management systems, with nearly 46% of respondents having invested in such technologies. Smart home services followed closely behind, with a 45% adoption rate. Furthermore, 43% of developers are turning to modular building to save time, especially when working on large projects such as flats or student accommodation.
Emerging technologies like virtual reality and artificial intelligence have also garnered attention, with 36% and 35% of developers investing in these technologies respectively. A further 43% are planning to invest in artificial intelligence for purposes that include intuitive building designs and managing customer enquiries.
“The benefits of technology investment for developers is potentially endless, however, as with any new technology they should understand first where it can add value to their business before investing,” Woodley cautioned. “Most importantly, it will be vital to work closely with a specialist lending partner that can help you realise your plans before taking the plunge on new developments.”
The findings underscore the increasing role of technology in the property development sector as developers look for ways to adapt to a challenging economic environment.
