Real estate — the 2030 view

We are building buildings into a technological future that we have no idea what it will look like.

Key influences:

• The sharing/collaborative economy
• Technology/data management — greater transparency
• Urbanization
• We are moving from smart offices to smart cities and megacities

2030 state:

• Real estate as a mainstream customer-centric industry
• Value shift towards operational management of real estate
• More integration/overlap of real estate sectors
• New dominant group of «place curators»
• Simplified ownership/management structures
• Transformation in valuation methodologies
• Health, wellbeing, sustainability merge as a key driver of real estate value

Residential/Living

Key trends:

• The urban consumers
• Change to live/work balance
• Reducing car ownership
• Ageing population

2030 state:

• Higher density
• More vibrant and live able urban environments, combining live, work, and play
• New growth: health care assisted living

We start seeing a different attitude to size and space. Micro-living is coming. Shared ownership, equity release and retirement living are ripe for opportunity

Office/Work

Key trends:

• Connectivity
• More collaborative working practices
• Artificial intelligence, augmented and virtual reality

2030 state:

• On demand and use of space leasing
• Offices as high-spec «imaginariums»
• Localized work-hubs/satellite offices
• Fewer single-let buildings as corporate requirements become more fluid
• Domination of share/serviced offices

More people work from home. Companies will need less space and it will change the nature of offices fundamentally. It will make a lot of the current office stock obcolete.

Student housing/Learn

Key trends:

• Technology — distributed learning
• Demographic — changing career plans/lifestyles
• Growing importance of social and collaboration skills

2030 state:

• Reduction in demand for on-campus, year-long students accommodation
• Declining perception in value of university degree
• Increase apprenticeship schemes
• More mature students

Student accommodation is pretty «cooked» in most places. Now you have to get it right

Retail and logistic/ Play

Key trends:

• E-commerce
• Technology-driven enhancement of customers experience
• Drones, 3-D Printing

2030 state:

• Shopping centers as multi-faced communities that embrace broader lifestyle needs of communities
• New asset class: urban consolidation hubs

With e-commerce we underestimate the extent to which the retail footprint will shrink. We are just phase of that

Read also: Emerging Trends in Real Estate in Europe 2017 and beyond, European Hotel M&A Trends for 2017, European Hotel M&A Activity in 2016, 7 Future Cities of the World

Know more about best places to grow: Amsterdam, Barcelona, Berlin, Budapest, Dublin, Lisbon

Read about M&A: Mandate F. A. Q., DD Check List

Our suggestions: 20 Must-Read Books

More about raising capital: Mezzanine financing, Equity financing, Debt financing, Investopedia: What is Private Equity?, What is The Difference Between Private Equity and Venture Capital?

Company Valuation Methods: Part1, Part2, Part3, Part4, Part5, Part6, Part7, Part8

Some strategies of raising capital: Bringing Your Company Public, Exploring Alternative Capital-Raising Strategies, Refinancing and Minority Equity as Partial Exit Strategies, 5 Alternatives To IPOs, How to Raise Capital For a Company in Financial Troubles, 7 Private Equity Strategies, Why Successful Business Owners Sell Out, The Six Types of Successful Acquisitions, Race to Become a Global Player, Refinancing and Minority Equity as Partial Exit Strategies, Guide To Equity Release Or «Cash-Out»