With 2021 in the books and a fresh start for the new year, we’re exploring what the future holds for real estate development. The industry is expected to experience growth over the next 12 months and beyond as we recover from the pandemic, with an anticipated increased demand for housing and job creation as a result.
Let’s take a closer look at some of the key trends shaping the future of real estate development and construction within Canada, and specifically British Columbia.
Real Estate Development Outlook for 2022
In 2020 and 2021, Canada experienced reduced demand for commercial and residential real estate development due to the COVID-19 pandemic and the resulting decrease in immigration and travel. While real estate prices soared sky high in hot markets, pandemic restrictions stifled growth for new developments, both commercial and residential alike.
As pandemic restrictions begin to ease across the country, experts predict that residential and commercial real estate development will stabilize, and the industry will experience growth over the next several years. The need for more housing will be a crucial driver of development over the next year, as developers look to meet the needs of both homebuyers and renters.
The following are some of the prominent trends that will impact real estate development in 2022:
· Increased demand for housing, especially multi-family dwellings and condos.
· A rise in mixed-use developments, as people seek live/work spaces closer to amenities.
· More focus on sustainability and green building practices to meet growing consumer demand for eco-friendly homes.
· Recruitment strategies will become more critical than ever as the industry struggles to meet the growing demand for workers.
As the industry recovers from the pandemic, we’re likely to see increased demand for skilled tradespeople. This will create opportunities for those in the industry, as developers look to bring on new staff to help manage their growing projects.
B.C.’s Growth of the Residential Construction Labour Force
According to data by BuildForce, an estimated 8,600 residential construction workers will be needed by 2030 to keep up with industry growth in British Columbia. Furthermore, an estimated 41,000 of the province’s construction workers are expected to retire over the next decade, a number that is projected to exceed new entrants by approximately 4,600 workers.
But what does this mean for real estate development companies? Employers can expect to see a significant demand for workers in the industry, and skilled workers will be in high demand. The availability of qualified workers may be limited, so residential construction companies should start planning early to secure the talent they need.
Effective recruitment and retention of skilled workers will become a competitive advantage for real estate development and construction companies. Working with a recruitment agency that specializes in the industry is strongly recommended, along with looking outside the box to attract qualified talent, including:
· Attracting talent from other industries, such as manufacturing and trades.
· Offering training and development programs to further develop the skills of current workers.
· Partnering with local schools and colleges to promote careers in real estate development.
· Focusing on attracting a more diverse workforce, including women and Indigenous peoples.
Those looking to enter the industry should consider training in trades such as carpentry, electrical work, and plumbing. With strong demand for qualified labour and good prospects for job growth, now is an excellent time to pursue a career in real estate development.
We’re excited to see what the coming year has in store for real estate development and our clients, as we look forward to watching the industry recover from the pandemic and continue to grow. Please reach out to us for assistance with recruitment for real estate development or if you’re seeking a career in this field.
