Almost six in ten global developers have delayed projects in response to the spread of coronavirus, new research has found.

A survey conducted by Knight Frank amongst 160 global developers across 22 nations found the pandemic has broken down supply chains and prompted a wholesale rethink of how and where people want to live. 

Knight Frank Associate Flora Harley said of those with delayed projects, more than four in ten were now making changes to designs that were once considered complete.

At a glance:

• A new survey from Knight Frank has found almost six in ten global developers have delayed projects in response to the spread of coronavirus.
• The firm asked 160 global developers across 22 nations how the pandemic had affected their projects.
• Respondents identified funding as the biggest barrier to global development, with just under a third citing it as their biggest concern. 

Source: Knight Frank 

“While it is still too early to confirm the lasting impact of the pandemic on the development landscape, it is clear that it has accelerated pre-existing trends and prompted new ideas for current and future developments," she said.

“Yet, what cuts through the findings of the research is the importance of not overreacting to the immediate fallout from the crisis.

"There is little evidence pointing to the need to design for future lockdowns or specified meterage for social distancing.”

Source: Knight Frank 

Ms Harley said survey respondents had identified funding as the biggest barrier to global development, with just under a third citing it as their biggest concern.

"Some markets have seen a reduced number of lending facilities offered to developers," she said

“At the moment there is decreased bank appetite for developer lending and in some markets, the pre-sales requirements make it hard to begin construction.

"One way for governments to spur construction would be to facilitate lending, perhaps through a combination of guarantees or loans.

"This would crucially remove one of the biggest hurdles in development and enable ground to be broken.”

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