Land and developing costs are rising

Growth: Savills say that land value growth remained strong in the first quarter of 2022 despite rising construction costs.

In the first quarter of 2022 greenfield and urban values increased by 1.4 per cent and 1.3 per cent respectively, taking annual growth to 9.3 per cent and 7.2 per cent.

This is in comparison to annual growth of 0.2 per cent and 1.2 per cent for greenfield and urban land in the first quarter of 2021.

High levels of demand and constrained land supply have maintained values and developers are still bidding competitively.