Research reveals increased adoption of AI and sustainability in property development
Property developers are increasingly turning to artificial intelligence and other technologies to respond to shifting market dynamics, according to recent findings from specialist lending bank Shawbrook.
The research indicates that 59% of developers are already employing AI within their operations. A further 57% intend to expand their use of AI in the future, with the same proportion anticipating that technology will fundamentally alter how developments are marketed and sold.
Broader technology adoption is also evident, with 60% of developers routinely monitoring market trends to ensure their projects align with current and anticipated demand.
Developers are not only investing in technology but are also adjusting their overall strategies to navigate a competitive landscape. The report shows that 57% have diversified their portfolios to address economic uncertainty. An equal percentage are offering incentives, such as covering stamp duty costs, to facilitate transactions.
Sustainability is gaining prominence in development decisions. Nearly two thirds (63%) of those surveyed identified sustainability as a key factor for both developers and buyers.
“Developers have time and time again proven themselves to be agile and adaptive in the face of tough and fast evolving market challenges,” said Terry Woodley (pictured right), managing director of development finance at Shawbrook. “It’s no surprise to see developers increasingly making use of AI and wider technology, and shifting their priorities, to optimise business performance – and this will without doubt only become more commonplace as everyone tries to get ahead of the curve and get an edge on competitors.
“The government's focus on housebuilding should also provide added impetus, and present opportunities for new, sustainable projects for developers to capitalise on. Speaking to a specialist lender could unlock new possibilities for those looking to accelerate their plans and future proof their business plans.”
Planning approvals in England have recently fallen to their lowest level in 13 years, fuelling doubts about the government’s ability to deliver 1.5 million new homes. Recent polling shows two-thirds of UK adults lack confidence in Labour’s housing target, while Savills has projected that the goal is unlikely to be met. In response, Prime Minister Keir Starmer introduced Extract, an AI assistant developed with Google, designed to digitise handwritten planning records and modernise the planning process.
“With Extract, we’re harnessing the power of AI to help planning officers cut red tape, speed up decisions, and unlock the new homes for hard-working people as part of our Plan for Change,” Starmer said.
For mortgage brokers, the increased use of AI and technology by the government and property developers signals a shift towards more data-driven, efficient sales and marketing processes. Brokers may see faster transactions, more tailored property offerings, and a greater emphasis on sustainability in new developments. Staying informed about these trends will help brokers better advise clients and remain competitive in a changing market.
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