Real estate experts are most concerned about construction costs between now and end of 2022

Emerging Trends in Real Estate® Europe 2022, the 19tth-annual survey by PwC UK and the Urban Land Institute (ULI) has seen a significant leap in confidence going into next year, despite the longer-term outlook characterized by uncertainty brought about or accelerated by Covid.

The report, based on the views of 844 property professionals, records the highest levels of business confidence since 2014, reflecting a broad sense of relief and short-term optimism that the industry has remained resilient during the pandemic and that real estate remains a favored asset class.

Yet the data also reveals that the issues most concerning the industry are construction costs and resource availability (88 percent), availability of suitable land and assets (66 percent), and sustainability and decarbonization requirements (61 percent). Supply-chain delays and worker shortages are also likely to exacerbate these issues next year.