helicopter view.

20 Oct, 2017

Real estate — the 2030 view

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»


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