Emerging trends in the UK real estate are set to influence a shift from regional to global focus.
According to JLL UK, seven trends identified as the low carbon economy, technological advancement and innovation, change in the workforce, urbanization, health, availability of resources, and social ethics and values, are set to influence the market, the economy, and sectors from around the globe for the upcoming years.
Climate change is a global crisis with impacts unfolding despite attempts of change. The value of real estate is significantly dependent on climate change. Extreme and often sudden weather changes are an imminent threat to financial rise or stability. With real estate developers foreseeing the future, adjustments are slowly coming in order to navigate the challenges. Developers are embracing the “green”, with an abundance of pay-off and benefits with insurers and investors publicly committing to the latest policy of recommendations for environmental related issues by the Financial Stability Board’s Task Force. Another corporate interest, is the development of smart cities. Long-term investors and real estate professionals understand the value of smart and sustainable properties in the market.
Technological advancements and innovation are not only changing the world but changing the real estate industry. Intelligent buildings and smarter technologies are pacing the tenant or occupant for an easier experience, along with the building manager and developer. Technical advancements are now being used in the building sensors and building mobile applications (could we be more specific on technical advancements).
Changes in the workforce is another trend to watch out for. The sharing concept or co-working spaces is a flexible environment that aims to benefit everyone. 30% of all workplace environments are predicted to be shared by the year 2030. Developers and investors catching on to the concept will be able to further develop their commercial property portfolio and embrace the change.
The urban shift from rural areas to city-centers is commonly known as urbanization. The United Kingdom has revived city-centre living with younger generations leading the way. The phenomenon is seen dominantly in Manchester, Liverpool, and Birmingham. With urban cores growing in size, the economic performance catapults, providing more opportunities for growth and development.
Real estate design and the surrounding community is a major contributor to personal health and well-being. Understanding the principles necessary for proper building design is essential to combat the negative effects of the environment.
Sustainability practices and strategies are vital in the real estate industry to decrease the chance of project failure, increase the acceptance to tenants and the community, and limit the usage of limited or expensive resources.
Social Ethics and Values
Property developments that drive the same social values and ethics as the surrounding community are instantly accepted and encouraged. While it is difficult to measure social ethics or values, identifying the local needs, local engagement, social metrics, and creating an approach that is outcome focused, developers will be able to reign several benefits.