From changing demographics, trends of urbanizations and new technology trends, there will be several shifts in the industry as far as real estate is concerned in 2020. Looking ahead, you can expect to see economic and political uncertainty, an abundance of capital with no place to go, inequality in our current housing markets and an increasing trend toward community-oriented development just to name a few.
The year ahead seems to have some direction with a slight fog of uncertainty.
Real Estate Trends Shaping the Future in 2020
- Expansion in Cities
Construction activity is thriving in the industry for 2020. As new cities are emerging across the world, the projected outcome of real estate in the future looks very bright. Even already developed cities will see a population increase, but only those who are equipped to support these up and coming real estate markets will thrive.
- A Greener Future for Real Estate
With population growth and urbanization, comes the need for more eco-friendly developments. Properties will be built and re-designed with a greener strategy in mind. More and more buildings will start to introduce and implement renewable energy technologies, waste reduction and overall more sustainable which will become an important aspect in the future value and appraisals of real estate.
- Shifts in Demographics
By 2020, global middle-class consumers will have grown by over 3 billion. This aging population will have a much larger impact on the future of property investing since new sectors will start to open up interest. The market will continue to have the upper hand in the main sectors of retail, office, industrial and residential; however, the older population will begin to need more nursing and retirement homes making it a significant subsector in the market pertaining to real estate.
These shifts will ultimately lead to changes in the demands and the overall development of real estate, so expect to see developed economies adding new types of properties to their existing real estate inventories.
With more and more millennials becoming parents, some are trading their urban dwellings for a home in the suburbs. But not all of this generation is ready to give up that city life just yet. Many are looking for affordability as well as urban accommodations such as dining, shopping and entertainment all within walking distance. This has also created a focus on new urbanism.
This movement is being called “hipsturbia” and is a major trend where the location of homes depends greatly upon the desired quality of life and access to jobs for this generation of millennials. Look out for more mixed-use development where the live/work/play formula becomes more and more relevant and high in demand.
- Virtual Reality & Augmented Reality Technology
Technology trends are changing the way real estate agents, investors, brokers and managers operate. In order to keep up with the rapid changes within the real estate tech industry, it’s important to be prepared by adopting a culture of continuous improvement and change.
Virtual reality and augmented reality are notable real estate technology trends where prospective buyers and renters can virtually tour a property at any given time no matter where they are in the world. This allows clients and agents to save both time and money while also enhancing their engagement and efficiency at the same time.
Augmented reality is being used by both brokers and builders to display unfinished spaces and allow prospective buyers to decorate their space using their phones or tablets. This advanced technology will help buyers and realtors visualize and perceive properties from a different and more unique perspective than before.