Despite economic headwinds, the CRE market demonstrated its characteristic resilience last year. The presence of high-value deals and strong performing sectors will have raised expectations for 2023. But will they be met?
Data from EG Radius has assessed the four major CRE sectors – office, industrial, retail and leisure – and identified 6 trends that could shape the market in the coming 12 months.
1. The planning backlog: will we see a surge in approvals this year?
While the volume of planning applications has been broadly consistent in recent years, 2022 saw a dip in the number of applications receiving permission – down 25% on the previous year.
However, EG Radius data shows that, rather than a lower success rate, this drop in approvals stemmed from a backlog in the decision-making process. Indeed, of the unapproved applications, more than 90% are still awaiting a decision.
Should this backlog ease, approvals could surge this year. But which sectors…