The Future of Real Estate: Think Globally
6 predictions for 2020 . . . and beyond
Experts predict the future of real estate will change considerably over the next six years and beyond. Those changes in light of the fact that consumer confidence has returned to the real estate arena. The changes have to do with global megatrends, according to PwC, London-based PricewaterhouseCoopers, one of the world’s “Big Four” auditors, along with Deloitte, EY (Ernst & Young) and KPMG (Klynveld Peat Marwick Goerdeler). More than 236,000 people in 158 countries comprise PwC, with one goal: to help business thrive.
In PwC’s latest publication, Real Estate 2020 Building The Future, the network explains how rapid economic and social change is transforming the build environment which affects the real estate industry. I blogged about the topic recently in my post called Is a New Housing Crunch on the Horizon? But this report sheds even more light on our future.
Here are 6 predictions for 2020 and beyond, based on key findings of the report:
- The global investable real estate universe will expand substantially, leading to a huge expansion in opportunity, especially in emerging economies.
- Fast-growing cities will present a wider range of risk and return opportunities.
- Technology innovation and sustainability will be key drivers for value.
- Collaborating with governments will become more important.
- Competition for prime assets will further intensify.
- A new and broader range of risks will emerge.
The changing landscape will have major implications for real estate investment and development. It will increase the size of the asset pool yet change the nature of investment opportunities. Real estate organizations will need to adapt early to survive and prosper.
If you want to check out the immediate future of real estate for the remainder of 2018, take a look at Emerging Trends in Real Estate, one of the oldest, most highly regarded forecast reports for the real estate and land use industry undertaken by PwC and the Urban Land Institute. Even in the short term, experts predict some major changes. Does that mean it’s time to list your property in Montecito, Hope Ranch or any of Santa Barbara’s upscale communities now? Contact me at 805.886.9378 or email me at Cristal@montecito-estate.com and let’s discuss the possibilities.