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Global Real Estate Development Updates - Q3 2026
Real estate development is being shaped by housing shortages, construction costs, infrastructure investment and changing demand for residential, mixed-use and specialist developments.
US housing starts reached an annualised 1.275 million units in August, with single-family starts up 7.6% month-on-month.
Multifamily starts declined 22.5%.
Housing shortages, urbanisation and nearshoring are supporting new development across major markets.
Demand is expanding beyond housing into logistics, infrastructure, hospitality and urban services.
Housing shortages remain widespread, but development is constrained by construction and financing costs.
Residential permits remain below previous-cycle levels in several major markets, while Southern Europe is showing greater development activity.
Saudi Arabia continues to advance major residential, tourism and infrastructure projects, with a substantial development pipeline.
Dubai has approximately 65,000 apartments and 12,500 villas scheduled for delivery by year-end.
Development viability remains under pressure from higher construction costs, which have risen approximately 40% across Asia Pacific since 2021.
New development is increasingly focused on markets and sectors where demand can support higher economic rents.
Housing and infrastructure development continue to face construction-cost and labour pressures.
Major development activity remains concentrated around residential, infrastructure, industrial and data-centre projects.
Updated quarterly. Global real estate development trends, construction activity and major development markets.
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