Structural shifts: Trends shaping Property and Construction
As businesses navigate a rapidly evolving global landscape, Procurement and Supply Chain functions are undergoing transformational change. From geopolitical uncertainty to the rapid adoption of Industry 4.0 technologies, leaders are being challenged to adapt at pace. At Investigo, we recognise that staying ahead of these shifts requires insight and strategic thinking. That’s why Lewis Douglas, Building Services Director at Investigo, is sharing his expert perspective on three sectors critical to the future of business.
In this second part of our series, we turn the spotlight to the Property and Construction sectors - industries experiencing powerful growth but also facing persistent skills shortages and increasingly complex market conditions.
Construction sector outlook: Growth, green goals, and talent demand
The UK construction market is gaining momentum, with several key drivers fuelling its expansion. The government’s commitment to addressing the national housing crisis, with a target of 1.5 million new homes by 2030, has already led to a 160% surge in housing applications. This, coupled with major undertakings like HS2, is significantly bolstering demand for construction professionals and contributing to broader GDP growth.
Sustainability continues to be a defining force across the industry. As the UK works toward net-zero carbon targets, demand is growing for retrofitting projects, the integration of renewable energy systems, and the adoption of sustainable materials. This green agenda is reshaping both the residential and commercial construction landscape.
To meet rising project demands, a wide range of skills are urgently needed. Trade roles such as electricians, carpenters, and plumbers remain consistently in demand, with thousands of new postings each month. At the same time, technical and managerial positions, including construction managers, civil engineers, and building surveyors, are critical for effective project oversight and delivery.
Meanwhile, the rise of digital construction tools is redefining job requirements. Proficiency in Building Information Modelling (BIM), drone technologies, and AI-driven project management platforms is becoming increasingly valuable, offering new ways to streamline efficiency and accuracy on-site.
Workforce challenges: A shortfall in talent and regional imbalance
Despite the sector’s promising outlook, the construction industry is facing a serious shortfall in skilled labour - an estimated gap of 217,000 workers by 2025. This shortage is being exacerbated by an aging workforce and a lack of sufficient new entrants into the trade. The challenge isn’t just about numbers, but also about ensuring the right balance of skills to meet evolving project needs.
Regionally, growth is uneven. Areas like the East and West Midlands are seeing significant development activity and increased workforce demand. In contrast, regions such as the North East are experiencing a slight downturn, underlining the importance of addressing geographic imbalances in talent and investment.
Shifting demand in office and residential markets
The commercial property market is beginning to show signs of recovery. For the first time since 2020, the UK’s office vacancy rate has declined - from 8.7% to 8.6% as of March 2025. Major corporations like HSBC and BP are expanding their office footprints, reflecting a renewed confidence in physical workspace.
However, this recovery isn’t just about square footage, it’s about quality. Businesses are seeking out modern, eco-conscious office environments that support hybrid work models and align with ESG priorities. The result is a clear “flight to quality” in the office space sector.
On the residential side, the reintroduction of national housing targets has sparked a notable uptick in planning applications. In parallel, government investment of £2 billion into social and affordable housing is aimed at meeting long-term community and housing needs, particularly for underserved populations.
Looking ahead
The UK property and construction sectors are poised for continued growth, driven by government initiatives, sustainability goals, and technological advancements. However, addressing the skills gap and ensuring a steady influx of qualified professionals will be crucial to sustaining this momentum and meeting the demands of an evolving market.
Next steps
In the next part of this series, Lewis will turn his focus to Facilities Management. If you're looking to future-proof your Procurement or Supply Chain function, whether through strategic workforce planning or reducing operational barriers, now is the time to act.
