The real estate industry constantly faces new challenges. However, challenges also bring new opportunities and growth.
Sergiy Shinkarenko, CEO of Enhance Development, has identified the top 5 trends in the real estate market development in the upcoming years.
For entrepreneurs in the industry, grasping these key trends will determine their path to success.
Trend 1: Mixed-use developments and shared workspaces
New realities dictate new conditions of life and work for both Europeans and Ukrainians. The real estate industry is evolving, experiencing a growing need for adaptable office spaces and shared living setups. These mixed-use properties, known for their high resilience and energy efficiency, are becoming more sought after.
Institutional investors are confident that successful projects in the future will offer multi-purpose spaces appealing to different generations and user types.
Business owners will address this need by offering customized environments for both business and personal use, while investors will finance these types of real estate ventures.
Trend 2: Digitalization in real estate operations
The global expansion of digital technologies is benefiting purchasers, vendors, and investors universally. Conventional real estate practices are undergoing changes, improving security, clarity, and productivity, and even facilitating property transactions directly between parties without intermediaries.
Within this trend, developments based on artificial intelligence are gaining significant importance.
Trend 3: Revitalization of cities and suburbs
In 2024, European developers and investors are particularly cautious about where they work and where they invest. They aim to focus on cities that can offer liquidity in uncertain times, with London and Paris remaining at the top.
Interestingly, suburban areas are also experiencing a revival. Economic challenges compel a reevaluation of priorities and adjustments in lifestyle.
For entrepreneurs, this fact is intriguing in terms of timely offering products desired by consumers. For example, Ukrainians, especially from high-risk areas, are interested in real estate in the western part of the country.
Trend 4: Focus on ecological sustainability
Environmental sustainability today is the point of survival of the entire planet. The real estate sector is increasingly prioritizing ecological construction methods, decarbonization standards, energy efficiency, and environmental stewardship.
Entrepreneurs who address these issues keep up with the times, and meet market demands.
Trend 5: Economic impacts: "Surviving until 2025"
Global economic uncertainty significantly impacts the real estate market. The increase in interest rates by central banks in 2022 and 2023 forced industry leaders to postpone dynamic development strategies and adopt a "wait-and-see" approach.
Key indicators include changes in capital and debt valuation, property assessment, construction costs, and risk assessment.
Although the situation is stabilizing compared to last year, we are still far from the optimistic outlooks of previous years.
Investors and creditors continue to grapple with the crisis in capital valuation. Higher interest rates complicate issues related to uncertain economic prospects and increasing pressure to comply with ESG standards.
"Surviving until 2025" is now the motto of real estate leaders as the market navigates uncertainty due to:
Regions with geopolitical stability may attract more real estate investments, while regions with instability may experience a slowdown.
Therefore, issues requiring resolution include affordable housing, healthcare, decarbonization, digitization, and communications. Real estate is already directing more capital into sectors that meet these fundamental needs.
Read the full article on Sergey Shinkarenko's blog at Liga.net.
For analysis, the annual Emerging Trends 2024 report from PwC and the Urban Land Institute was utilized.
The Emerging Trends in Real Estate report is based on interviews with leading real estate investment experts and regional surveys conducted jointly by PwC and the Urban Land Institute in Europe, the United States, Canada, and the Asia-Pacific region, and serves as a key indicator of global real estate sentiments.
Sergiy Shinkarenko, CEO of Enhance Development, has identified the top 5 trends in the real estate market development in the upcoming years.
For entrepreneurs in the industry, grasping these key trends will determine their path to success.
Trend 1: Mixed-use developments and shared workspaces
New realities dictate new conditions of life and work for both Europeans and Ukrainians. The real estate industry is evolving, experiencing a growing need for adaptable office spaces and shared living setups. These mixed-use properties, known for their high resilience and energy efficiency, are becoming more sought after.
Institutional investors are confident that successful projects in the future will offer multi-purpose spaces appealing to different generations and user types.
Business owners will address this need by offering customized environments for both business and personal use, while investors will finance these types of real estate ventures.
Trend 2: Digitalization in real estate operations
The global expansion of digital technologies is benefiting purchasers, vendors, and investors universally. Conventional real estate practices are undergoing changes, improving security, clarity, and productivity, and even facilitating property transactions directly between parties without intermediaries.
Within this trend, developments based on artificial intelligence are gaining significant importance.
Trend 3: Revitalization of cities and suburbs
In 2024, European developers and investors are particularly cautious about where they work and where they invest. They aim to focus on cities that can offer liquidity in uncertain times, with London and Paris remaining at the top.
Interestingly, suburban areas are also experiencing a revival. Economic challenges compel a reevaluation of priorities and adjustments in lifestyle.
For entrepreneurs, this fact is intriguing in terms of timely offering products desired by consumers. For example, Ukrainians, especially from high-risk areas, are interested in real estate in the western part of the country.
Trend 4: Focus on ecological sustainability
Environmental sustainability today is the point of survival of the entire planet. The real estate sector is increasingly prioritizing ecological construction methods, decarbonization standards, energy efficiency, and environmental stewardship.
Entrepreneurs who address these issues keep up with the times, and meet market demands.
Trend 5: Economic impacts: "Surviving until 2025"
Global economic uncertainty significantly impacts the real estate market. The increase in interest rates by central banks in 2022 and 2023 forced industry leaders to postpone dynamic development strategies and adopt a "wait-and-see" approach.
Key indicators include changes in capital and debt valuation, property assessment, construction costs, and risk assessment.
Although the situation is stabilizing compared to last year, we are still far from the optimistic outlooks of previous years.
Investors and creditors continue to grapple with the crisis in capital valuation. Higher interest rates complicate issues related to uncertain economic prospects and increasing pressure to comply with ESG standards.
"Surviving until 2025" is now the motto of real estate leaders as the market navigates uncertainty due to:
- Expectations of a recession in Europe overall and in major economies such as Germany and the UK.
- Conflict in Israel in the Gaza Strip.
- War in Ukraine.
- Elections in many European countries and the rise of right-wing parties.
- Internal issues in Europe: housing affordability, social inequality, and mass migration.
Regions with geopolitical stability may attract more real estate investments, while regions with instability may experience a slowdown.
Therefore, issues requiring resolution include affordable housing, healthcare, decarbonization, digitization, and communications. Real estate is already directing more capital into sectors that meet these fundamental needs.
Read the full article on Sergey Shinkarenko's blog at Liga.net.
For analysis, the annual Emerging Trends 2024 report from PwC and the Urban Land Institute was utilized.
The Emerging Trends in Real Estate report is based on interviews with leading real estate investment experts and regional surveys conducted jointly by PwC and the Urban Land Institute in Europe, the United States, Canada, and the Asia-Pacific region, and serves as a key indicator of global real estate sentiments.
