UKREiiF in 2026 highlighted a market under pressure. Viability challenges, tightening regulation and economic uncertainty are slowing activity, particularly in the residential sector, while infrastructure, power and funding constraints are reshaping how projects come forward.

Despite wider market pressures, several sectors continue to show clear momentum. Data centres in particular stand out, with sustained demand and strong underlying drivers continuing to support growth.

Here are six key takeaways from this year’s conversations, and what they mean for the industry.

1. Viability pressures are continuing to slow development activity

Across the event, there was a consistent sense that market conditions remain challenging. Rising costs, increasing layers of regulation and wider economic uncertainty are all placing pressure on scheme viability, particularly within residential and urban regeneration projects. While investor appetite still exists, many are taking a more cautious approach to deploying capital in the current climate.

2. Infrastructure remains the key enabler of growth

Despite broader market hesitation, developments tied to strategic infrastructure continue to progress. Investment in transport, utilities and primary infrastructure is still creating momentum for major schemes, particularly where there is clear long-term commitment and funding in place. In many cases, viable infrastructure is the factor determining whether development can happen at all.

There was also growing recognition that utility providers, IDNOs and NAVs are playing an increasingly important role in unlocking development viability through upfront infrastructure investment. This shift is helping some developers bridge funding gaps and progress schemes that may otherwise have stalled.

3. Power constraints are becoming one of the industry’s biggest challenges

A recurring theme throughout UKREiiF was the growing impact of power availability on development. Limited grid capacity is now widely seen as one of the biggest barriers to getting projects off the ground, with no single solution available. Instead, developers are increasingly having to explore a range of site-specific mitigation strategies and alternative approaches to energy infrastructure.

The issue is also changing how projects are planned, with earlier engagement around utilities, more flexible energy strategies and greater consideration of onsite generation and storage wrapped under smart, behind-the-meter networks.

4. Placemaking is evolving beyond traditional infrastructure

Conversations around placemaking extended well beyond roads and utilities. Green and blue infrastructure, stewardship strategies, schools, neighbourhood centres and meanwhile uses were all highlighted as critical components of delivering early, coherent communities, with this also increasing investor confidence in the long-term success of the project. There was a clear sense that “soft infrastructure” is becoming just as important as physical infrastructure in creating places that attract investment and support thriving communities.

Investors are also increasingly looking beyond physical assets and placing greater value on long-term stewardship, community infrastructure and adaptable mixed-use environments that help create resilient neighbourhoods and lasting social value. Nature based design being hugely important.

5. Certain sectors continue to outperform the wider market

While residential and regeneration sectors are experiencing slower activity, other areas continue to demonstrate resilience. Industrial & Logistics, Data Centres and Energy Infrastructure were repeatedly identified as sectors where demand and investment confidence remain comparatively strong, helping to offset wider market uncertainty.

6. Diversification will be critical over the next 12–18 months

One of the clearest strategic themes was the importance of diversification. With market conditions varying significantly between sectors, maintaining a broad and adaptable project portfolio is increasingly seen as essential for sustaining growth and resilience over the coming years.