Sustainability, Diversification & AI in Property Development

• 59% of UK developers are already using AI tools
• 57% plan to increase AI adoption in the future
• 60% track market trends via AI-driven insights
• 57% have diversified their projects to mitigate uncertainty
• 57% are offering buyer incentives such as Stamp Duty coverage to drive sales
• 63% now place sustainability at the heart of their developments

As competition intensifies and economic pressures rise, AI is becoming a strategic asset for property developers across the UK. 59% of developers are already using AI to support their business and 57% plan to use AI more in the future. The same percentage agree that AI and technology will transform the way they sell and market their developments in the future. 

Developers are facing a range of challenges, from economic headwinds to skill shortages, as explored in the key property development challenges facing the UK in 2025. The industry is therefore counting on AI and wider technology to support future growth. Indeed, 60% of developers are regularly tracking market trends to ensure their new developments meet current and future demand, helping them to stay ahead of the curve.

Beyond embracing new technologies, developers are also shifting their approaches more widely to keep up in an ever more competitive environment. More than half (57%) of developers have diversified their investments and projects to better navigate economic uncertainty, while the same number are offering incentives to buyers, such as paying stamp duty costs, to try and get deals over the line.

As part of their diversification efforts, developers are also increasingly giving consideration to sustainability factors - with almost two thirds (63%) agreeing that sustainability is now a key consideration for both themselves and buyers.

Terry Woodley, Managing Director of Development Finance at Shawbrook, comments:

“Developers have time and time again proven themselves to be agile and adaptive in the face of tough and fast evolving market challenges. 

“It’s no surprise to see developers increasingly making use of AI and wider technology, and shifting their priorities, to optimise business performance - and this will without doubt only become more commonplace as everyone tries to get ahead of the curve and get an edge on competitors.

“The Government's focus on housebuilding should also provide added impetus, and present opportunities for new, sustainable projects for developers to capitalise on. Speaking to a specialist lender could unlock new possibilities for those looking to accelerate their plans and future proof their business plans.”

Property development is evolving rapidly, with developers increasingly turning to AI-driven tools, sustainable construction practices, and diversified investment strategies to stay competitive. Shawbrook supports this shift by offering:

• Tailored Development Finance – Bespoke funding designed to support projects that incorporate innovation, sustainability, and long-term growth.
• Expert Market Insight – Strategic guidance from specialists who understand the impact of emerging technologies, ESG expectations, and new investment approaches.
• Flexible Lending Solutions – Adaptable finance structures that can meet the varied needs of developers, whether focusing on energy-efficient builds, property development diversification, or AI-enhanced project management.

By working with Shawbrook, property developers can access financial expertise that supports innovation, sustainability, and diversification, helping them navigate today’s challenges and move projects forward with confidence. 

_Methodology

_{Research was conducted by Censuswide between 06.02.2025 and 24.02.2025, surveying 568 property developers aged 18+ across England, Wales, and Scotland.}