I’m a property developer – here’s why I’m still building in London

Today’s housing market is hampered , build cost inflation, weaker sales and headlines about war in the Middle East and Ukraine. But residential development has always been about managing cycles: with many projects taking more than a decade from conception through planning, construction to handing over the key to new homes. Property developments starting construction now will not be finished until 2029, , home-buying should have picked up and hopefully, the global state of affairs will have stabilised. Some of the most successful property developments have been commenced at the bottom of the market, with a view to selling into a stronger economy when sentiment is better. By contrast, many property developers who started on site at the top of the market, hailing a “new paradigm” that said property market cycles had been eliminated have hit trouble when the economy has cooled off. With a collapse in housing starts in London – only 4,770 homes were started in the capital in 2024-2025: a drop of 72 per cent on the previous year – there is a strong argument that now is the perfect time to start building in the capital. London is suffering from a structural shortage of homes, and by 2029 given very few starts being planned in the next three years, this situation will only get worse . I can understand why many developers have paused or slowed down construction: materials and labour costs have soared by 20-30 per cent in the last five years and swathes of new regulations and taxes mean spending millions on a new property development is a very bold move. But because we have confidence in London in the long term, Ballymore, our joint venture partner Penta Real Estate and our lenders have started construction on developments in Canary Wharf, Nine Elms and Battersea with a total investment of £750m. At difficult times in the market like this, we need to remind ourselves of London’s exceptional position as a global driving force. It is a truly global financial centre, with the City of London generating £109bn in annual economic output – roughly four per cent of the national figure. It is home to some of the world’s best universities, with Imperial College, University College London, London School of Economics and King’s College London ranked among the world’s best educational establishments. And let’s not forget its immense cultural footprint, being home to the Royal Opera House, the Royal Albert Hall, the Southbank Centre, Tate Britain, Tate Modern and Barbican Centre.