2023: An uncertain time in construction? OMRT to the rescue
Updated: Feb 16
Welcome to 2023. While we often see change from one year to the next in the global economy, this year brings one very significant change, interest rates. For the first time in over 10 years, we have entered a new calendar year in Europe with the interest rate set by the European Central bank above zero. And for the first time since the 2008 crash, rates are above 2%.
Not only this, but the rate upheaval has been fast & furious, with four consecutive significant rises taking place last year, and more on the way. In normal economic terms, this should result in a slowdown of new constructions. As mortgage rates rise, new buyers are priced out of the market. Demand subsides, and new builds slowdown.
But these are not normal economic times. Accompanying these rate rises are high inflation & fear of recession. However record low unemployment, high rents & a housing crisis in every European city from Amsterdam to Athens signal a stronger economy. The times are uncertain, but the demand for new, well-built, and sustainable homes is higher than ever.
Is technology set to massively disrupt the construction sector?
Innovation to the rescue? OMRT’s position as a young and innovative company in this transforming European construction scene is becoming more and more clear for all to see. In a world where construction costs can spiral & the economic realities of a development can change in weeks (not years), what counts more than anything? Speed. Gone are the days where we can conduct a feasibility study and count on consistency of the build or sale price from one year to the next.
And the result of this turbulence? It means that across the continent, projects have ground to a halt, with reality moving faster than planning. A 24 month design cycle is no longer acceptable when market conditions can change on a whim.
So what’s next, do we just stop building in the face of these challenges? No way. People still need places to live, and there will continue to be an enormous opportunity for developers to solve these problems while meeting their bottom line financials. But to do this, you can’t simply go on doing as you did before, you need a hero. Developers need new ways of thinking and can no longer afford to miss out on the latest advancements
We specialise in speed.
An AI visualisation of the housing crisis and construction in Amsterdam
A rapidly evolving landscape in Europe
Fast design plans, giving an (almost) overnight indication of the viability of a build, from financials to saleable units, to physics analytics on countless potential variants for a site. Call it what you may, a feasibility study, a sanity check, or a “can I just build here” assessment, but OMRT’s parametric design paradigm can solve a lot of these problems. We’ve been investing millions of euros in improving our procedures and our software since 2018. Learning how to bring creativity, people & technology together.
And we think we’re getting close to perfecting things. With this economic uncertainty kicking in full speed ahead, you might want to give us a call. If you need a hero, put these solutions we’ve worked hard to develop to the test in 2023.
If you’re curious to see if OMRT can help get you unstuck, call Maarten Zwemmer at +31 622 929 967 or contact us here