Delivered at an event attended by more than 500 senior figures from across the Scottish real estate sector and public sector, the warning comes at a pivotal moment for the industry as it continues to grapple with rising construction costs, levels of finance costs not seen since the 2008 financial crisis, and a plethora of additional burdens imposed upon it, such as the new Building Safety Levy.

Taken together, Stott warned these are stretching the viability of most development proposals to breaking point, and resulting in many of them being paused or abandoned.

Given that the real estate industry supports hundreds of thousands of jobs, with development activity creating a cascade of employment touching every area of Scottish life, he added that if left unaddressed, it could have dire consequences for Scotland’s economy and communities.

This includes a deepening of the housing crisis, as new homes aren’t built, as well as improvements to community facilities and public realm not being taken forward as regeneration and development stalls.

Mr Stott does, however, welcome the partnership approach already being undertaken by the Scottish Government to more effectively promote investment opportunities in Scotland on the global stage and UK stage.

The Real Estate:Scotland annual dinner also celebrates the achievements of the industry to date in playing a strong role in supporting the fundamentals of Scotland’s offer.

This includes world-class universities and their facilities; a strong professional services sector with modern, high-quality office accommodation; innovative and creative industries and manufacturing, and a quality of life offer able to effectively attract and retain global talent and investment. 

Cameron Stott said: “Development viability has deteriorated to crisis levels due to rising costs and more regulatory burdens, such as the new Building Safety Levy. Unless urgently addressed, all development will stall which means that we cannot deliver new housing, regenerate communities, or create new jobs.

“That’s why addressing this crisis isn’t just commercial – it is a social imperative. However, there are positive signs that the government is starting to take note, which is why despite these serious challenges, I do remain optimistic about Scottish real estate’s future.”