Altus Group Report Reveals Pandemic Fueling Wait-and-See Approach by Global Property Developers While Accelerating Digital Transformation - Seite 2

In addition, many executive respondents expressed surprise that significant distressed asset opportunities have not yet emerged, despite the heightened level of economic disruption caused by the pandemic. While this could be a signal that the worst is yet to come as signs of a COVID-19 second wave emerge, development executives appear to be continuously evaluating conditions and waiting for more opportunities to arise.

Pandemic intensifies top challenges facing development firms – including disruption to construction sites

• 73% of development executives said project cost escalation is a significant challenge facing development firms, followed by environmental regulations (70%), government policies and processes (65%), and trade and labour shortages (65%).

• COVID-19 has amplified existing challenges with increased trade and labour shortages, physical distancing requirements on construction sites impacting productivity, construction site halts in certain regions, and the complexity of government policies and processes.
  

Recognition that adoption of digital transformation and technology must be fast-tracked
With so much unknown due to the pandemic, there has been a shift in recognition among development industry leaders that the adoption of technology can help development firms stay agile and navigate what lies ahead. The findings suggest that development executives are broadly acknowledging that digital transformation strategies and tools are the key to building resiliency for the industry in a prolonged and sustained development crisis.

• 52% of development executives are considering or planning to use digital transformation strategies to mitigate business challenges, and 37% are already doing so.
  
  
• 56% are considering or planning to use data analytics to mitigate business challenges, and 28% are already doing so.

The Altus Group Global Property Development Trends Report is based on a global quantitative survey of 404 property development C-level and senior executives in both front and back office positions at property development firms and owner operators and owner investors with property development divisions in North America, Europe, Middle-East, Asia-Pacific and Latin America. The survey research was supplemented by a series of in-depth interviews with senior development executives. All participating firms had a development pipeline equivalent to at least $200 million USD under development at the time of the survey. The survey research used to help form the basis of the report was conducted by leading international research firm, IDC, in early 2020 and the in-depth interviews were conducted by IDC in late July 2020.