Optimistic about 2025? Kiwi construction leaders share reasons for feeling positive.
‘Challenging times’ has become a well-used, and some would say well-worn phrase over the past few years. As we launch into 2025, is it finally time to lay this phrase to rest here in New Zealand? Some of our Kiwi building and construction sector leaders seem to think so...
“The building and construction sector is poised for a rebound, fuelled by several positive trends,” says Registered Master Builders Association Chief Executive Ankit Sharma. “First, the recent reductions in the Official Cash Rate are translating into lower interest rates, improving access to finance for builders and developers and offering better lending options for clients. This shift is gradually restoring economic confidence and encouraging clients to revisit their building plans.
“Second, construction cost inflation has eased significantly, providing builders and clients with greater certainty when planning projects. This stability lays the foundation for renewed activity across residential, commercial, and infrastructure developments.
“Third, New Zealand faces a long-standing shortage of housing and infrastructure, a gap that has widened over decades and successive governments. As economic conditions improve and confidence returns, we expect to see increased demand and growth to address this critical need.”
He adds, “The resilience and adaptability of our sector is remarkable. Despite the challenges, builders have embraced change, adopted new technologies and enhanced their business practices. These factors combined make me confident that 2025 will be a year marked by growth, opportunity, and innovation.”
New Zealand Green Building Council Chief Executive Andrew Eagles shares Sharma’s optimism for the year ahead. He says, “There are some brilliant spaces being built, and the rate our industry is upskilling and embedding more sustainable materials, design choices, and ways of doing things is heartening."
“Heading into 2025, I’m optimistic that the tools and training is there for anyone keen to find out more. Thanks to green finance offerings from banks building greener healthier buildings and homes now delivers considerable financial benefits for developers and builders.”
If there is one New Year's Resolution Eagles would like the industry to achieve by the end of the year ahead, what would it be?
“One of the key ways to ensure better homes and buildings is to move away from the Building Code’s schedule and calculation methods of compliance. With more and more townhouses, apartments, and higher density homes being built, it’s more important than ever to model the performance of our designs, and ensure things like insulation, ventilation, glazing, and orientation deliver homes that don’t overheat or cost a fortune to heat.”
He adds, “2025 is the year for us to move away from arbitrary R values of the schedule method, and towards considering how a home will actually perform. With a bit of time spend modelling at the start of a project, it’s pretty easy and affordable to ensure we’re building to the healthy, comfortable, and sustainable standards we all deserve.”
Meanwhile, Sharma says a keener focus on financial literacy and developing better business acumen would be a wise shift for many in construction next year. “If the sector could embrace one resolution in 2025, it would be to prioritise business and financial management, alongside craftsmanship.
Sharma says Registered Master Builders is taking a leadership role in this respect by launching a voluntary financial rating programme in partnership with CreditWorks in 2025. This initiative enables members to showcase their financial strength and operational robustness, giving them a competitive edge.
“By demonstrating financial health and sound governance, builders can foster trust with clients, suppliers, and lenders while enhancing the overall reputation of our industry,” he says. “If the sector collectively embraces these principles, we can not only continue to build outstanding structures but also cultivate long-lasting confidence in our industry – which is a 2025 resolution we can all rally behind.”
So, what are the key messages to Kiwi builders and construction industry professionals, heading into the New Year?
Eagles says, “We should be proud of the buildings and homes that we’re creating for our fellow Kiwis. The next five years promise a huge shift in how we consider climate and health.
“If you haven’t already, start upskilling and finding out about things like Homestar and greater energy performance. Creating spaces fit for the future is vital. It helps deliver healthier buildings and can increase your financial returns.”
Registered Master Builders’ Sharma reflects on recent times and has this start of the year statement for the sector. “The last few years have tested our resilience, but they have also demonstrated what we are capable of achieving under pressure. Our sector has been through winter, but summer is on its way. With opportunities on the horizon, let us focus on sharpening our skills, strengthening our businesses, and working collaboratively to meet the needs of our communities.
“To all builders and industry professionals: take time to rest and recharge over the holiday break. Return revitalised, ready to seize the opportunities that await in 2025. Together, we can make it a standout year for New Zealand’s building and construction sector.”
