Real Estate turns Digital
The future of the global real estate market is largely dependent on developments in digital technologies, according to a new report. Technology will play a key role in business transformation and the workplace. E-commerce expansion and opportunities for telecommuting create a need for spaces that function flexibly and adaptable for both workplaces and home life. Urban Land Institute (ULI) and PwC conducted published a report from survey titled, “Emerging Trends in Real Estate”. The survey found that many major changes are happening in the real estate industry globally.
One concern is the depreciation of physical assets like real estate. They are decreasing in value with time due to rapid changes. However, this may not be as much of an issue. Especially, if there’s new technology or spending habits that come into the equation. It’s not just the developers and retailers being affected, it’s real estate as well. Analysts have noted that new generations transition into workers and consumers. They’re, thus, meeting different needs that include flexible work arrangements and experience-focused hotels and shops. This means redefining the way owners look to improve their business, and how they want it to perform. “The industry has begun to accept the challenges and opportunities arising from the structural impact of technological, social and demographic trends in the built environment,” the survey notes.
Becoming more cautious
Real estate investors are becoming more cautious. This happens especially amid concerns of political uncertainty, trade wars, and slowing economies in major markets. There have been concerns about the housing market in 2019, but people are pointing out there are still some positives. European investors are reportedly more cautious about the economic outlook as growth has slowed in a number of countries, Italy has entered recession and prospects for Brexit look gloomy.
European survey respondents recieve great encouragement by the inflow of capital into their sector but warn that there are not enough investment opportunities for the demand. We often see people investing in real estate when the economy is unstable. Investments are also rising in other regions, such as the US. There have been some significant capital flows that are benefiting the region from countries like Canada, France, Germany and Singapore. When it comes to a recession, the respondents pointed out that there will be a short pullback followed by a recovery.
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Author: PC-GR
The World of Technology
