The cost of moving slowly

Real estate and construction has for decades been shaped by long horizons. 

Projects take years to plan, fund and deliver, and success has traditionally depended on discipline, patience and careful risk management.

But the decade ahead is likely to require something different: speed. 

Demand is shifting, supply chains are becoming more fragmented, capital is more contested and competition for specialist skills is intensifying. 

In a market that is changing faster than ever, the ability to make confident decisions quickly could become one of the sector's greatest competitive advantages

Yet our global study, The mid-market maze, suggests many real estate and construction firms may be struggling to keep pace. 

Will speed become the sector’s biggest liability?

Firms in the sector take an average of 50.5 days to move from initial discussion to implementation on a new market opportunity – almost 19% slower than the cross-industry average of 42.6 days. 

When your organisation identifies a new market opportunity, on average how long does it typically take to move from initial discussion to implementation?

And the gap widens when conditions change unexpectedly. 

When faced with competitor moves, supply chain disruptions or regulatory shifts, firms in the sector take an average of 34.2 days to respond, compared with 28 days across the wider mid-market. In practical terms, that makes the sector 22% slower to react than businesses in other industries. 

On average, how quickly does your organisation respond to unexpected market changes (e.g., competitor moves, supply chain pressures, regulatory shifts)?  

In a more predictable market, that delay may be manageable.  

In the decade ahead, it could become a significant liability.

Transformation is no longer optional

Our global study suggests that real estate and construction industry leaders recognise the scale of the challenge ahead. 

More than two-thirds (66%) believe they must rapidly transform their business model to remain viable over the next decade – the highest level of urgency recorded across all sectors in our research. 

The pressure is coming from multiple directions. 

More than half (52%) expect significant industry consolidation, while 65% anticipate rising capital costs creating additional pressure on margins and growth. 

Most notably, 61% identify supply chain constraints as one of the key barriers to growth over the next decade – the highest proportion of any sector surveyed.

These pressures are changing where real estate and construction firms are choosing to compete.  

As firms diversify into logistics, data centres, life sciences, mixed-use schemes and other growth areas, they are not simply following demand. They are also positioning themselves to access and retain the specialist skills needed to deliver more complex, future-facing projects. 

For mid-market businesses, the advantage may lie in how quickly they can turn urgency into action. 

The mid-market advantage

More than three-quarters (77%) of sector executives cite lower levels of bureaucracy as a key strength over larger competitors, while 72% highlight their ability to build strategic partnerships quickly and effectively. 

In a market defined by uncertainty, the winners will be those that spot opportunities sooner, mobilise resources faster and act with greater confidence than their competitors.  

Because the greatest risk may no longer be making the wrong decision. It may be taking too long to make one at all.