Many of the predictions being made for the property market are of hope for an upturn, with a dose of reality and caution included. Recent forecasts from major agencies suggests that prices are likely to increase by an average of 3.4% in 2025 and then by 4% in 2026.

Judgement is still out on how the Labour Government and its budget is going to impact the cost of doing business and the housing market. Plus, the global economic and socio-political impact of Trump’s return as President is yet unknown.

In conversations with developers, their biggest challenge in 2024 was getting planning consent and the availability of development opportunities. They are hopeful that the new National Planning Policy Framework will change the planning environment but it will take a while to work through the system so it will have more of an effect in 2026 than 2025.

Once again there is going to be a need for leaders in real estate to steer their businesses through challenging market conditions.

Here I look at seven ways leaders can encourage growth during a tough market.

1. Where will you spend your time?

The MD of an overseas property company spoke recently of how much time he was spending on resolving issues instead of priorities for growth. Time is finite, and every leader faces competing demands that all require attention so deciding on the priorities where you will spend your time is key.

I often ask my clients to draw out the buckets where they currently spend their time – clients, board meetings, team meetings, pitches etc…and then draw out their ideal. You may have an additional bucket that has become critical, or you may need to reduce the percentage of time in one and increase time in others. What tasks will you delegate and what activities will you say no to?

Here are three simple questions to help you delegate:

• What will I never delegate? – this is my role
• What can I delegate now? – this is preventing me from fulfilling my role
• What can I delegate soon, with training, to whom? – this can be a development goal for someone that can be motivating and aid succession planning

2. Collaboration is the key to growth

Collaboration instead of competition, inside and outside of your business, fosters growth and opportunity.

A talented London operator in a global property agency has recently been promoted to lead a national team. He has a reputation for strong client relationships and building revenue.  He recognised this was not an easy market but understood that the quickest route to growth was by tapping into the whole teams’ expertise and client network. He brought regional teams, that had normally worked independently, to come together to look at client needs, their problems and pool their knowledge and experience.  Client meetings now include a cross-section of people who can discuss trends in different parts of the country so clients can build more diverse and resilient portfolios.  He is learning himself and has already seen some success in clients wishing to broaden their investment decisions. Not only is he building a culture of collaboration, but he is also building his reputation as a leader.

A marketing consultancy with a property specialty is becoming known for their ability to organise ‘by invitation only’ events for clients, where they feel mutual opportunities lie. These small bespoke groups have led to collaborative projects with people that might have taken them months to engage and build a relationship with.

Creating new collaborations within and outside your business adds value. How do you act as a partner for growth, rather than just doing your job? What key relationships are you building for you and your clients?

3. Recruit to fit your culture

A boutique property consultancy that had grown quickly had recruited several new team members to meet demand. However, as the team grew, the culture of the core team that had driven the initial success was lost.  The business had become stagnant and political. The Founders had to make some tough decisions and let go of some of the newer members that had joined during their growth phase. Within weeks of making the change the lean team had more energy and got their mojo back. They learned from their mistakes and put in a clear criteria for future recruitment, bringing in new people that fitted into their entrepreneurial culture.  The business is growing again – they are working hard and having fun!

Be clear on the behaviours and values that are key to your culture and spend time focusing on questions that will reveal this in the interview

Just a few ‘wrong people’ can make a huge difference to growth and success.  Some will go on to succeed in different cultures, just not yours.

4. Communicate often and well

Consistent communication becomes increasingly important in a challenging market. Share information regularly, be clear and candid and avoid hiding information.  Balance giving realistic facts around tough decisions with providing hope of what is to come. As Napoleon said, “a leader is a dealer in hope”.

As Napoleon said, “a leader is a dealer in hope”.

When communicating, let people see the real you.

A new MD of an investment firm was preparing for her first town hall meeting with the company to introduce changes. It became clear when listening to her practice her presentation, she was delivering facts without letting people get to know her.

She changed her approach and included some stories and visuals about her career journey and how she juggled business with a growing family. People saw her human and funny side as well as her values, and vision for the business. People buy into your character before the strategy – and this made a difference to them coming on board with the changes.

5. Encourage innovation

It has been interesting to see the growth of independent agencies and SMEs in the prime residential market. These businesses are finding innovative ways to use data, technology and exceptional marketing to allow their experienced brokers to do what they are good at.

Innovation does not happen by accident – the MD of a consultancy in the leisure sector has built the business off the back of always wanting to be different.  Their market reputation is for creative, original thought, and they often win pitches from much larger competitors. A key habit that they have practised for years is once a month they have a full team meeting solely focused on “What can we do better”.

6. Maintain a motivated team

When people feel valued and appreciated, they will work harder to succeed for you.

The CEO of a commercial property consultancy wanted to make sure his team were motivated. He recognised he did not always acknowledge people as often as he could.

Acknowledging people in writing has a huge impact. Whether it’s a hand-written note or an email – people will often share it with their family or read it again on an off-day.

One of his team chose to return from maternity leave to attend a pitch of what was her biggest client. It was important to her to be present. He appreciated this and rather than just send flowers he made sure the note demonstrated his appreciation and respect for her loyalty and commitment, which made a big difference to her.

The MD of a property development company believes in rewarding the behaviours you want to develop. As well as celebrating success with team lunches at every stage of the development process, he gives a discretional bonus when they acquire land, get planning consent and when they sell when there is a profit share commission.

7.  Continue to learn and grow

The property sector is constantly evolving – and so are the skills leaders need to succeed.

Leaders who stop learning risk becoming irrelevant. Avoid being the “dinosaur in the room” who’s outpaced by younger, more curious colleagues.

Identify the skills and knowledge gaps in your business and tackle them head-on. Take control of your own learning. Plan which skill(s) will have the most impact on your career and the business. Ideally, this should be an area you enjoy exploring, as passion drives sustained effort.

Knowledge is power. Keep learning to stay ahead of the game.

What kind of leader will you be in 2025?

To help your team and business thrive in a year that will no doubt have some challenges, focus on collaboration, innovation, motivation, smart recruitment, strong communication and continuous learning.

Leaders who embody these traits will have an advantage in an industry that continually evolves.