The Future of Property Management: Key Trends for 2025
The property management sector is entering a transformative phase, fuelled by rapid technological advancements and innovative strategies. As we look to 2025, several trends stand out, promising to redefine commercial real estate management. These changes offer opportunities to enhance efficiency, reduce costs, and optimise operations.
This blog explores the most impactful trends shaping the future of property management. All views were from property management professionals in the UK.
Our Question
Which of the following do you think might have the biggest impact on the property management sector this year?
·Skill shortages
·AI and property technology (PropTech)
·Sustainability and energy
·Regulatory and compliance issues
Findings
Sustainability and energy were the most mentioned factor, indicating that energy efficiency, sustainability, and related policies are at the forefront of concerns in property management. Skill shortages and AI and property technology were equally discussed, highlighting both the immediate workforce challenges and the growing role of technology in the sector. Regulatory and compliance issues was the least mentioned, though still significant, particularly due to ongoing legislative changes.
Delving Deeper
Sustainability and Energy
This was the most frequently mentioned topic, with experts highlighting its growing importance in property management. MEES (Minimum Energy Efficiency Standards) and the uncertainty over who should bear the costs of energy efficiency improvements, landlords or tenants, are key concerns. Buildings with lower carbon footprints are becoming increasingly desirable for both investors and tenants, pushing sustainability to the forefront of decision-making. Sustainability policies and energy efficiency requirements are also reshaping investment and management priorities. While AI and PropTech have the potential to support energy management, skill shortages and resistance to change may slow adoption. Additionally, political factors and upcoming regulations could further drive sustainability efforts this year.
“Sustainability and energy efficiency are crucial factors, with increasing regulatory and market-driven pressure to improve building performance.”
Skill Shortages
Many respondents highlighted skill shortages as a persistent issue in the property management sector. A lack of qualified professionals, particularly in areas like retrofit, energy, and sustainability, is creating significant challenges. Local authorities, in particular, are struggling due to uncompetitive salaries, leading to work backlogs, reactive rather than preventative maintenance, and outdated procedures. Additionally, knowledge gaps among tenants regarding lease obligations and compliance are adding further complexity to property management. While skill shortages may not be the most immediate issue in 2025, they are expected to become the biggest long-term challenge over the next five years.
“The skills gap is affecting service quality and increasing workloads, particularly in the public sector and specialist areas like sustainability.”
AI and Property Technology
AI and PropTech are seen as having huge potential to reshape property management. AI is already being used for routine tasks such as administrative work, report writing, and tenant communications. Smart technology, such as AI-driven damp and mould monitoring, is helping build more accurate property profiles. AI could streamline operations, but its adoption is being limited by a lack of training and resistance to new technology. Some concerns were also raised about an over-reliance on AI, which could erode soft skills such as communication and negotiation among professionals. Companies that fail to embrace AI-driven efficiency may struggle to remain competitive in an evolving market.
“AI and technology are transforming property management, but adoption barriers remain, especially due to skill shortages and scepticism.”
Regulatory and Compliance Issues
Regulatory changes continue to have a significant impact on property management, particularly due to the ongoing implementation of the Building Safety Act. Many professionals are experiencing confusion and reluctance to take on new responsibilities due to the complexity of the changes. A lack of training is making it difficult for property managers to stay up to date with compliance requirements. Leaseholders are also placing increased pressure on managing agents, as frustrations with evolving legislation grow. Additionally, changes in responsibilities are creating challenges in securing insurance, adding another layer of complexity to compliance.
“Ongoing regulatory changes, particularly around safety and compliance, are creating operational difficulties, and training gaps are making adaptation harder.”
The Recruitment Impact on the Property Management Sector
Recruitment in property management is facing significant challenges due to evolving industry demands. Skill shortages remain a major issue, particularly in areas such as energy efficiency, retrofit, and compliance. Many employers, especially in local authorities, are struggling to attract and retain qualified professionals due to uncompetitive salaries, leading to backlogs and reduced service quality.
The rise of AI and PropTech is also reshaping skill requirements. While automation is improving efficiency, professionals still need to understand and manage these technologies. There is increasing demand for candidates with tech literacy, data analysis skills, and experience in AI-driven property management tools, while traditional soft skills like communication and problem-solving remain in high demand.
Sustainability and regulatory changes are further influencing recruitment trends. New energy efficiency standards and compliance requirements mean that firms need specialists in building safety, legal compliance, and sustainability strategies. Many property managers are struggling to keep up with evolving regulations, driving demand for training specialists and compliance officers.
Overall, the property management sector requires a strategic approach to hiring and talent retention. With skill shortages persisting, firms that offer competitive salaries, clear career progression, and training opportunities will be best positioned to secure top talent in a rapidly evolving market.
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