Real Estate Trends in 2024: What to Expect? π‘π
In 2024, the real estate sector is expected to witness a surge in trends centered around high sustainability and mixed-use properties, along with a focus on low energy costs. As the European real estate sector grapples with inflationary pressures and rising interest rates, it's also paying close attention to environmental, social, and governance issues. The Central Bank's interest rate hikes in 2022 and 2023 have led to a "wait-and-see" approach due to valuation and construction cost risks. This uncertainty has raised questions about whether real estate will remain a preferred asset class, leading to record-low investment volumes.
The "2024 Emerging Real Estate Trends" report by the Urban Land Institute closely tracks economic forecasts, including concerns about slow growth across Europe and major economies like Germany and the UK, as well as addressing social and political issues such as housing affordability, social inequality, and mass migration. Investors are approaching capital allocation with more caution, focusing on cities that provide liquidity during risky times. While migration to European countries offers advantages in terms of the economy and workforce, it also affects geopolitical debates and can create new challenges for real estate development. The aging population curve in western regions is predicted to alter housing demand, with industry leaders recommending the development of housing for the elderly by 2030. ππ’
Changing Urban Economies and Investment Dynamics: Expectations for 2024 πΌπ‘
In 2024, the rising trends in the real estate sector are expected to revolve around properties with high sustainability and mixed-use applications, coupled with low energy costs. ππ±
The attractiveness of real estate relative to other asset classes and its ability to attract capital have increased due to the narrowing yield gap with fixed-income assets, leading real estate investors to seek new project development concepts. So, how will the real estate trends for 2024 shape up? πποΈ
Strategic Approach for Efficiency in Mixed-Use Buildings ποΈποΈ
In the coming years, successful sectors, according to institutional investors, will have multiple-use areas that cater to different generations and types of users. These mixed-use project areas will be urban-scale and transportation-focused. Improving scale and management efficiency in these mixed projects will become one of the most important features for land development companies shaping the sector. ποΈπ
Alignment with Current Workplace Trends in Offices π’πΌ
Hybrid work is a significant concern for real estate professionals, but there is no concrete evidence of its impact on the office sector. The speed of the return to workplaces post-pandemic also varies between countries and cities. The sector should prioritize providing high-quality spaces that allow companies to adapt to current working practices. ππ₯οΈ
The three key factors influencing workplace strategies are cost, location, and talent attractiveness. With their reduction, shorter lease contracts and more flexible workspace offerings are expected. Post-pandemic, the office sector faces an increasing risk of obsolescence due to the widening gap between primary and secondary assets. Nevertheless, many well-located buildings still require significant funding for improvements or repositioning. πΌποΈ
Continued Investment Value in Residential Properties ποΈπ
Although the residential sector has caught up with the office sector in terms of investment volume, it remains a developing sector with a 317% increase in investment volume over the past 15 years. Residential volume can be seen as a safe haven during difficult times, surpassing commercial real estate volume worldwide. The sector performed exceptionally well during the Covid pandemic, and the potential returns are expected to continue to attract investors in 2024. π π°
Interest in student accommodations is on the rise due to the mismatch between supply and demand across Europe. Despite the deepening affordability crisis in Europe, expectations for affordable and social housing are less favorable compared to the previous year. Only 12% of Europe's housing stock has been renewed to meet climate change goals for decarbonization efforts since 2020. πποΈ
In conclusion, when evaluating the changes in the real estate sector in recent years in Europe and America, similar trends are expected in our country in 2024: ποΈπ
Real Estate Trends in 2024: What to Expect? π‘π
In 2024, the real estate sector is expected to witness a surge in trends centered around high sustainability and mixed-use properties, along with a focus on low energy costs. As the European real estate sector grapples with inflationary pressures and rising interest rates, it's also paying close attention to environmental, social, and governance issues. The Central Bank's interest rate hikes in 2022 and 2023 have led to a "wait-and-see" approach due to valuation and construction cost risks. This uncertainty has raised questions about whether real estate will remain a preferred asset class, leading to record-low investment volumes.
The "2024 Emerging Real Estate Trends" report by the Urban Land Institute closely tracks economic forecasts, including concerns about slow growth across Europe and major economies like Germany and the UK, as well as addressing social and political issues such as housing affordability, social inequality, and mass migration. Investors are approaching capital allocation with more caution, focusing on cities that provide liquidity during risky times. While migration to European countries offers advantages in terms of the economy and workforce, it also affects geopolitical debates and can create new challenges for real estate development. The aging population curve in western regions is predicted to alter housing demand, with industry leaders recommending the development of housing for the elderly by 2030. ππ’
Changing Urban Economies and Investment Dynamics: Expectations for 2024 πΌπ‘
In 2024, the rising trends in the real estate sector are expected to revolve around properties with high sustainability and mixed-use applications, coupled with low energy costs. ππ±
The attractiveness of real estate relative to other asset classes and its ability to attract capital have increased due to the narrowing yield gap with fixed-income assets, leading real estate investors to seek new project development concepts. So, how will the real estate trends for 2024 shape up? πποΈ
Strategic Approach for Efficiency in Mixed-Use Buildings ποΈποΈ
In the coming years, successful sectors, according to institutional investors, will have multiple-use areas that cater to different generations and types of users. These mixed-use project areas will be urban-scale and transportation-focused. Improving scale and management efficiency in these mixed projects will become one of the most important features for land development companies shaping the sector. ποΈπ
Alignment with Current Workplace Trends in Offices π’πΌ
Hybrid work is a significant concern for real estate professionals, but there is no concrete evidence of its impact on the office sector. The speed of the return to workplaces post-pandemic also varies between countries and cities. The sector should prioritize providing high-quality spaces that allow companies to adapt to current working practices. ππ₯οΈ
The three key factors influencing workplace strategies are cost, location, and talent attractiveness. With their reduction, shorter lease contracts and more flexible workspace offerings are expected. Post-pandemic, the office sector faces an increasing risk of obsolescence due to the widening gap between primary and secondary assets. Nevertheless, many well-located buildings still require significant funding for improvements or repositioning. πΌποΈ
Continued Investment Value in Residential Properties ποΈπ
Although the residential sector has caught up with the office sector in terms of investment volume, it remains a developing sector with a 317% increase in investment volume over the past 15 years. Residential volume can be seen as a safe haven during difficult times, surpassing commercial real estate volume worldwide. The sector performed exceptionally well during the Covid pandemic, and the potential returns are expected to continue to attract investors in 2024. π π°
Interest in student accommodations is on the rise due to the mismatch between supply and demand across Europe. Despite the deepening affordability crisis in Europe, expectations for affordable and social housing are less favorable compared to the previous year. Only 12% of Europe's housing stock has been renewed to meet climate change goals for decarbonization efforts since 2020. πποΈ
In conclusion, when evaluating the changes in the real estate sector in recent years in Europe and America, similar trends are expected in our country in 2024: ποΈπ
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