As the Greek philosopher Heraclitus observed, ‘change is the only constant’. That sentiment resonated strongly when 40 senior figures, all representative of private and public interests in the real estate sector came together at the invite-only Scotland Investor and Developer Breakfast.

The aim was to foster honest and open dialogue among the diverse group of stakeholders with experience spanning Scotland, the wider UK and international markets.  

At a time when Scotland – and the UK more broadly – is navigating economic and geopolitical headwinds, I hoped there would be a measure of agreement regarding the available real estate opportunities, alongside frank roundtable discussions on the key challenges currently holding back greater investment in many Scottish residential and commercial real estate projects. 

I need not have worried for it quickly became apparent that many delegates recognised the need for a step-change in approach. 

Arguably, that was hardly surprising. While there are some glimmers of economic optimism, particularly around predictions of further interest rate cuts and a cautiously improving sentiment regarding transactions, the over-arching message from many discussions at UKREiiF was clear. Capital is available, but unlocking it depends on restoring market confidence. Macroeconomics, bluntly, is only part of the story. 

Delegates at the Scotland Investor and Developer Breakfast shared this sentiment. Many sought real clarity on how to address wide-ranging issues affecting delivery of projects in Scotland’s central belt and beyond, including crippling planning delays, stretched local authority teams and public sector policy uncertainty. 

Equally, it was noted and warmly welcomed, that the Scottish Government is placing planning at the heart of its economic strategy. Significantly, the Programme for Government doesn’t just frame planning as a technical process, but rather as a core enabler of broader outcomes, including economic growth and poverty reduction. That’s significant. 

Many attendees hoped that this approach could open real opportunities for our industry, to demonstrate how development, when done well, isn’t merely a financial calculation, but a route to creating vibrant and sustainable communities. However, delegates, including council leaders from several Scottish local authorities, recognised that implementation of the government strategy remains challenging. Indeed, a recent Scottish Government review has identified over 20,000 stalled homes across 114 sites.

No-one at the breakfast anticipated that the dialogue would offer quick fixes to the most pressing of issues. However, the chance for the private sector to exchange experiences of the market with public sector representatives, and to discuss key issues and potential ways forward, was positively received. 

From a capital perspective, there’s awareness of initiatives such as the Invest Scotland programme and the ongoing support of Green Freeports. Yet there was also a frank assessment that the success of these initiatives will depend heavily on the surrounding infrastructure and housing delivery. The North-East Energy Transition Zone is an example of a project where long-term success will rely on having homes and services in place to support both the construction and operational phases.

Within the residential sector, the appetite to deliver more projects is clear. However, private investors and developers remain acutely aware of the risks involved. While funding is available, they are seeking greater clarity and support from public sector bodies and policymakers to help alleviate those risks.

They know that while in the UK the Build-to-Rent (BTR) sector is booming - with a record £5.2bn invested in 2024 - investment volumes in Scotland have fallen by two-thirds since 2020. Primarily due to uncertainty around rent controls. Private sector delegates, aware how that uncertainty impacts investment in BTR and Purpose-Built Student Accommodation (PBSA) are closely watching developments around the Housing (Scotland) Bill, concerned that extending rent regulation could further stall new developments.

Will proposed rent-cap exemptions for new developments make all the difference to restoring investor confidence? Time will tell. 

In a gathering of such influential figures across the public and private sector, it was further recognised that affordable and mid-market housing offered real scope for partnership. The Scottish Government has committed nearly £600m to support new supply this year and is actively seeking institutional investment to scale delivery. This blend of public funding with private capital is already unlocking projects across the country, demonstrating what’s achievable when risks are aligned and objectives shared.

In what I would describe as a ‘united room’, there was a great deal of discussion about the delivery of mixed-tenure housing projects. Many delegates - representing public and private sector interests - recognised that the successful delivery of affordable housing projects is most impactful when they form part of a wider mixed-tenure approach. 

Of course, public funds remain constrained and the pressure to deliver with limited human and financial resources is high. But the message in the room was clear: private sector investors are willing and ready to play their part. They just want greater clarity and support in navigating policy. Removing barriers to project delivery is essential to enabling the effective deployment of capital in ways that meet both financial and social objectives.

It appeared quasi-public sector representatives were receptive to these private sector concerns. There was an acknowledgment of the frustrations expressed and recognition they needed to be addressed. Some spoke of ongoing efforts to improve systems and to use public sector resources more proactively to generate a pipeline of mutually beneficial developments. 

In summary, the 90 minutes of professional, frank and open dialogue established a strong foundation for ongoing collaboration between public and private sector real estate interests. Private sector delegates welcomed the opportunity to engage directly with public sector counterparts. 

The stage is now set to build upon this successful event, with plans already underway to follow up later this year. The appetite for change is real. The capital, demand and vision are all in place. Now, the focus must shift to delivery, providing investors with the certainty they need to help shape a modern, enabling approach to placemaking across Scotland.