Five construction market trends to look forward to in 2025

The real estate and construction industries are expected to face both fresh opportunities and challenges in 2025. Market priorities will be shaped by the need for innovative design, cost reduction, and simplified project methodologies.

Based on its work with developers, architects, lead design consultants, and contractors, Carter Hones Associates, a consultancy that specialises in design, cost, and project management, has identified major themes that will shape the industry's future in the area.

The emergence of integrated design management

Mega-developments in the UAE and KSA are become more complex, necessitating improved coordination between contractors, architects, and interior designers. Because of this complexity, there is a greater need for integrated design management, which facilitates clear processes, reduces work duplication, and guarantees that design and construction stay in sync.

"Projects are no longer stand-alone efforts. They are ecosystems of interconnected disciplines," said Nathan Hones, chief operating officer and partner at Carter Hones Associates. "Efficient design management is essential for maintaining project cohesion and guaranteeing timely and cost-effective delivery. With stricter and higher-value repercussions placed on service providers, design management must be a focus area for architects."

Increased attention on the need for budget-friendly design

Value engineering and cost consulting have become essential components of project planning as developers deal with tighter budgets due to inflation and increased material costs. Pre-construction services like contract management and feasibility studies are becoming more and more important for preventing expensive delays and guaranteeing long-term financial viability.

"Developers are seeking strategies to balance ambition with practicality," said Zane Heasman, chief commercial officer and partner at Carter Hones Associates. "Cost alignment and ongoing programme management are now essential to a project’s success. By proactively monitoring budgets and managing the design process with clear protocols, we ensure designs stay on scope and on schedule, enabling efficient and effective delivery." 

Complementing national visions

Sustainable development and mixed-use urban design are being promoted by national frameworks that set ambitious targets, such as the giga-projects in Saudi Arabia ( (Neom, Qiddiya City, and the Red Sea Project) and the smart city initiatives in the UAE. Because of this, the structure of feasibility studies and project planning services has changed, guaranteeing that innovations fulfil long-term goals while yet being flexible enough to adjust to changes in the market.

Flexible workforce solutions and talent gaps

Increased activity in both markets has revealed a lack of skills, especially in technical and project management fields. In response, in order to add skilled people to their teams, developers and contractors are depending more and more on secondment services. In addition to filling gaps, these seconded positions are encouraging knowledge sharing between regional and global organisations.

"Secondment is an effective way to address immediate workforce needs while ensuring in-house teams are equipped to handle future challenges," added Craig Carter, managing director and partner of Carter Hones Associates. 

Data-driven project management

Data analytics and digital tools are increasingly being used for project management. In keeping with a larger trend towards evidence-based decision-making, developers are depending on tech-enabled solutions to manage everything from cost projections to post-construction evaluations. In 2025, it will take a new set of skills to keep up with the quick changes in technology.

"Data is transforming how projects are managed, offering real-time insights into progress, risks, and opportunities," added Carter.