EXPO REAL – RICS Futures Forum: Future of the Profession: How can we adapt in an age of disruption?” A2.232 - International Investors Lounge by PropertyEU - EXPO Real, Messe München GmbH, Messegelände, Munich, 81823, Germany | 16:30 - 17:20

Five megatrends will change real estate

Five megatrends are going to have a huge impact on the real estate sector in the next few years, according to RICS research which was presented at the RICS/PropertyEU Future of the profession briefing, which was held at EXPO REAL in October.

The five mega-trends – demographics, globalisation, climate change, urbanisation and technology – are all connected and will all determine huge changes, said Barbara Knoflach, deputy CEO and global CEO Investment Management, BNP Paribas Real Estate.

‘After transport, real estate will be the sector that will see the biggest impact from digitalisation on a global level,’ she said. ‘So much has already changed and we have such a long way to go.’

All five trends will work together to have a big impact on the real estate sector, said Joan D.Gutés, founding partner, bQuantium: ‘We must have a holistic approach and realise that the future is here already, change is happening here and now. High standards and ethics are more important than ever.’

The urbanisation trend, which is linked to demographics, is already having a huge impact on investment decisions. ‘Investors no longer put their money in Spain or in Germany, but in Barcelona or Berlin,’ said Maria Seiler, director, Real Estate Advisory, PricewaterhouseCoopers. ‘The real challenge is managing the infrastructure for the next stage of urbanisation, because this trend has only just started.’

Everyone can see changes creeping into various sectors, such as e-commerce in retail or co-working in offices, but it is easy to underestimate the importance of demographics, said Knoflach: ‘In ten years’ time in Europe more than one third of people will be retired . That is tomorrow, and we are not nearly prepared for this in terms of senior housing provision, healthcare and so on.’

Technology is likely to be the most relevant megatrend because it will determine what happens to the other four, said Noah M.Steinberg, CEO & Chairman, WING. ‘It is already changing how we use our buildings, which now are the single biggest polluter in the world, and it will help reduce energy consumption.’

Change is happening faster than we realise, he said: ‘Booking.com is the largest hotel company in the world but they do not own a single building or a single bed. That would have been unthinkable until recently, so it is clear we are moving in a new direction.’