Globalisation, political turbulence, changes in urban living patterns, increased digitisation, shifting consumer behaviour and flexible working are just some of the issues that are transforming the demands on the built environment.
Across Asia in particular, unprecedented urbanisation continues to fuel growth, although its diverse demographics and markets mean this plays out in a variety of ways at a more local level.
In Europe, the commercial real estate market continues to evolve and to attract significant international investment. Most recently, we have seen South Korean investors building large portfolios of office building investments, attracted by cheap financing, high yields and currency hedging premiums.
Globally, the nature of metropolitan areas is changing as new generations choose to live differently and global life expectancies increase. We see a rise in shared working spaces and co-living; a stellar increase in the logistics sector thanks to e-commerce (as well as difficulties for retailers – and landlords – who depend on physical stores for their business); and a focus on ensuring the digital landscape supports the 24/7 demands of modern living.
As the world focuses on climate change and sustainability, the real estate sector is also giving environmental, social and governance (ESG) criteria serious consideration when planning new developments. But there are a number of difficulties in this area, including a lack of agreed standards and reporting requirements. Regulators globally are working to create new ESG requirements, but these will differ across countries and present challenges to those companies operating internationally.
If you would like to discuss any of these issues, or anything else, we would be delighted to have a conversation with you.