Demand Report Mid-Year Review

Residential brands rode an unprecedented wave of success last year as the stamp duty holiday saw buyers rush to take advantage of the deadline. This year isn’t as straightforward. House prices continue to soar, and although continued growth in new buyer enquiries is being reported across the board, dwindling supply means options are limited for prospective buyers. Combined with increasingly high mortgage rates and the cost-of-living crisis, the prediction is that
real estate brands could see the market level out or cool off towards the end of the year.

According to Deloitte’s Real Estate Predictions for 2022, digital transformation and data are two vital areas for real estate  companies to focus on in the coming months, as understanding market trends and consumer behaviour in more detail is vital.

As one of the hardest-hit sectors in 2020, the commercial property market is recovering nicely in 2022. Rumour was that WFH was going to be the death of the office, but demand says otherwise. The
number of people hybrid working has increased this year, and multiple reports show companies are expanding, not decreasing, their real estate footprints. The UK flexible workspace market is set
to double by 2023 to meet this demand.

The retail market is continuing its recovery with a gradual footfall improvement, but the cost-of-living crisis and supply chain disruptions remain a persistent threat. Businesses with physical space that don’t offer online shopping are now considering a hybrid approach to weather the next half of the year. Primark’s latest move is a great example of this.

No one benefitted from the surge in demand last year more than  property portals. The uptick in performance and interest was significant, but this year a decline in brand searches more accurately
reflects the market.

Reports across the board indicate that properties
are taking longer to sell in 2022. That, combined with a lack of stock driving continued house price growth, means portals are seeing activity plateau and in some cases, dip.