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Blog A year of risk and reward

Real estate and construction is probably not the first sector that comes to mind when you think about environmental sustainability. The construction process consumes large amounts of natural resources and energy, and can create significant waste. While the progress of development continues to add to our quality of life, the built environment is responsible for approximately two-fifths of global energy use and a third of carbon emissions. This means that, from design to demolition, the buildings in which we live, work and play have a huge impact on the environment.

The real estate and construction sector continues to make steady progress as it recovers from a financial crisis in which investors, developers and homeowners were disproportionately hit.

I am currently at MIPIM, the annual gathering of property professionals from around the world, and can report that the mood is much improved from this time last year. Developers, property companies, investors and homeowners suffered disproportionately during the financial crisis.

Developers, property companies, investors and homeowners suffered disproportionately during the financial crisis. But now, finally, expectations for profitability, jobs and orders are all on the rise.

The presence of fraud and corruption in construction can take many forms; from falsely representing the number of hours a contractor works, through to collusion when bidding for contracts or paying bribes to secure a contract. These inevitably increase costs and, in the case of bribes, inflate the contract price.

The presence of fraud and corruption in construction can take many forms; from falsely representing the number of hours a contractor works, through to collusion when bidding for contracts or paying bribes to secure a contract. These inevitably increase costs and, in the case of bribes, inflate the contract price.

Business optimism in markets such as China, the UK and the US has risen markedly over recent months according to the Grant Thornton International Business Report (IBR)[1]. And the most interesting aspect for me is the contribution of the real estate and construction sector to the brightening economic outlook.