Nick Neophytou and Richard Watson explore how developers can make schemes stack up in challenging times

Writing for Estates Gazette, Nick Neophytou, Managing Director of Mantra (part of BTG), and Richard Watson, London and South East Auctions Director at BTG Eddisons, discussed how real estate developers may need to address challenges in the market make their schemes stack up.

As planning, regulation, and supply chain delays are leaving schemes exposed to a mix of rising interest rates, material inflation, and soaring costs for longer periods, some developers are seeing projects becoming unviable. While developers may have been able to mitigate some of the issues in isolation, the cumulative impact of multiple challenges over the long term means it is harder than ever to make schemes stack up, let alone deliver on profitability.

To support real estate developers with these challenges, Nick and Richard suggest that early intervention is the best route of action, seeking advice from financial and real estate experts while working closely with lenders. Waiting for longer periods for market recovery or intervention from the government could see conditions worsen, so the experts explore how developers can look at refinancing, rethinking schemes, and strategic exit through auctions.

Read the full article on Estates Gazette.