Property investment and construction: opportunities in a changing market
At UKREiiF (Real Estate Investment & Infrastructure Forum), a leading event for property and construction, experts from across the industry contributed to a useful overview for ambitious businesses: where opportunities are emerging, where pressure points remain, and what to think about next in order to grow with confidence.
UKREiiF brings together developers, investors, local authorities, housing associations, consultants, legal advisers and funding providers, creating a snapshot of where the market is heading. That breadth matters because successful projects increasingly depend on collaboration across disciplines and between the public and private sectors.
Our conversations confirmed the commercial realities businesses have in common: higher financing costs, evolving regulation and continued economic uncertainty. At the same time, there was clear interest in funding and investment opportunities, especially around residential development, regeneration and infrastructure-led schemes. Capital hasn’t disappeared, but that it has become more selective.
Property investment and construction opportunities do exist, but they will favour businesses who are commercially disciplined, partnership-minded and able to turn strategy into delivery.
Maria Pozo-Riqueni
Property VAT specialist
The themes property businesses could not ignore
Property and economic growth
A clear theme at UKREiiF was the Government’s continued focus on increasing housing and using development and infrastructure investment to support economic growth
For property investors, developers and construction businesses, that creates opportunity, but also raises practical questions around delivery, funding and risk.
Affordable housing remains high on the agenda, yet viability pressures, rising build costs and slower routes to delivery are delaying progress.
There was also strong momentum behind regeneration and investment outside London. Future growth is increasingly tied to understanding place-based opportunities, local partnerships and the policy context behind regional investment plans.
Sustainability
Rather than simply discussing targets, many organisations are now focused on implementation, particularly retrofit, energy efficiency and how to meet ESG expectations in ways that are commercially realistic.
The challenge is less about whether sustainability matters and more about how to deliver it without undermining the viability of schemes.
Technology and AI
Many businesses are already exploring AI’s potential for operational efficiency, data management, forecasting and decision-making.
Those that can use data more effectively, model risk more clearly and improve their visibility are likely to be in a stronger position as market conditions remain selective.
How BKL can help
For a chat about your property investment challenges and ambitions, get in touch with your usual BKL contact or Maria using the form below.
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Frequently asked questions: UKREiiF, property investment and construction
What did UKREiiF 2026 reveal about the outlook for UK property investment and construction?
UKREiiF 2026 pointed to a cautiously optimistic market where opportunities exist but require disciplined execution. The event highlighted continued government support for housing delivery and infrastructure-led growth, alongside strong interest in regeneration and regional investment.
However, viability pressures, higher costs and selective funding mean not every project will succeed. Opportunities for investors and developers are real, but success depends on strong financial planning, realistic appraisals and the ability to deliver.
Why is housing delivery still such a major focus for the sector?
Housing delivery remains central because it is a key government priority tied to economic growth and addressing the housing shortage. Policy direction continues to encourage new development, particularly affordable housing.
Hindering progress are rising construction costs, planning delays and funding constraints. Businesses need to balance policy opportunity with commercial reality, ensuring projects are viable before committing significant capital or resources.
How are regional regeneration and “levelling up” opportunities evolving?
Regional regeneration is becoming a core source of growth for property investors and developers. UKREiiF highlighted increasing investment pipelines outside London, supported by local authorities and infrastructure programmes.
These opportunities are often location-based. This means that success depends on understanding local policy, funding arrangements and partnership structures.
If your business engages early with regional stakeholders and aligns with local development priorities, you are more likely to secure and deliver viable projects.
What are the biggest risks affecting project viability right now?
The main risks include rising build costs, higher interest rates, planning uncertainty and evolving regulatory requirements. These factors can significantly impact scheme viability and delay delivery timelines.
In particular, tighter funding conditions mean lenders and investors are more cautious, requiring stronger evidence of financial resilience and delivery capability. Your business should stress-test assumptions, model different scenarios and factor in contingencies before progressing developments.
How has the funding environment changed for property developers and investors?
Funding is still available, but it has become more selective and scrutinised. Investors and lenders are prioritising well-structured deals with clear delivery plans, strong financials and credible partnerships. This shift means businesses must present robust appraisals and demonstrate how they will manage risk, particularly in uncertain market conditions. Access to capital increasingly depends on the quality of preparation as much as the underlying opportunity.
What role does sustainability now play in property investment decisions?
Sustainability has moved from a strategic ambition to a practical delivery challenge. Investors and developers are now focused on implementing measures such as retrofit, energy efficiency improvements and ESG compliance in ways that remain commercially viable.
Increasingly, sustainability is linked to asset value, regulatory expectations and long-term performance. The key question is no longer whether to invest in sustainability, but how to do so without undermining project returns.
How are technology and AI influencing property and construction businesses?
Technology and AI are becoming increasingly important for improving efficiency, forecasting and decision-making. Businesses are using data to model risk, manage projects more effectively and enhance operational performance.
While adoption is still evolving, investing in better data management and digital tools is likely to give a competitive advantage, particularly as investors and lenders look for greater transparency and certainty.
Why is collaboration so critical in the current market?
Collaboration is essential because successful developments now depend on multiple stakeholders working together. UKREiiF reinforced the importance of partnerships between developers, investors, local authorities and advisers to unlock projects and structure viable delivery models.
Complex funding environments and planning challenges mean that isolated approaches are less effective. Businesses that build strong relationships and align interests across the public and private sectors are better placed to progress schemes.
What is a common misconception about the current property market?
A common misconception is that the market is stalled due to economic pressures. In reality, activity continues, but capital is more selective and focused on well-prepared opportunities.
Projects with weak fundamentals are more likely to struggle, while well-structured, strategic developments can still attract investment and progress. Understanding this distinction is critical for businesses planning growth in the current environment.
What should property businesses do next to stay competitive?
Your property business should focus on strengthening financial planning, understanding regional opportunities and building partnerships that support delivery. This includes reviewing funding structures, assessing ESG requirements, and ensuring that projects are viable before moving forward.
Working with advisers who understand the sector can help your business navigate tax, structuring and strategic decisions, ultimately improving your ability to turn market insight into success.
