Property development is an ever changing market. Factors such as the economic crash of 2007-8, Britain’s upcoming removal from the European Union and changes in leadership such as the presidency change in the United States next year all have major implications on real estate development. Not only that but social and lifestyle changes dictate different requirements within property development. Shopping patterns are shifting drastically and the ever increasing migration of workers means that to remain static is to embrace failure. The following comprises some of the current major changes within the landscape of real estate development.
The world is getting older. As healthcare and life conditions improve so people’s lifespans have increased. People generally tend to retire in their 60’s but can plausibly expect to live for a further 20-30 years. This means that the dependency ratio will continue to shift towards an increase in numbers who are out of work and potentially in need of additional facilities in their homes. This leads to properties needing to be more specifically catered to the elderly including better accessibility and additional accommodation to allow for care workers. It is much easier to plan such considerations beforehand and build accordingly rather than retro-fitting as this will prove to be more expensive or inadequate.
Changing Shopping Trends
The amount of products which are now purchased online has greatly changed the need for retail developments. Many high street shops are starting to close down and their productivity and profitability is being tested. This has led to there being a reduced demand for high street retail developments. More and more out of town shopping centres and complexes are being built and there has been a greater requirement for large mall developments. Technology advances have led to the need to make extensive changes in many stores and complexes so building new retail developments which take these into account will make them more appealing to lease and can command higher returns.
The internet has altered the need to work near to an actual workplace. Many people will now work through their computers without the need to be present in a central office. This shift has had major implications on property development. Whereas previously it would be beneficial to create residential properties within easy access of a major business hub this is no longer as necessary. In fact, many people will be working internationally and so they will be able to work from home or within coffee shops etc. This increase in working satellite through a computer has led to an increased need for home office spaces and shared working areas. Consider this when planning out a residential project as people’s style of working evolves. Commercial projects can also take this into account and it has led to an increase in demand for communal places to work through a laptop such as coffee shops like Starbucks and the like.
More and more people want to make savings on their energy bills and to reduce their carbon footprint. Real estate development companies should look to incorporate as many ways to be green as they can. Many properties are now being developed with solar panels installed on the roof. Doing so will reduce the electricity usage in the property and make it a more desirable. Water can be retained and recycled to bring down costs also. By providing more energy efficient properties you will be giving yourself the best possible chances to attract purchasers and leasers.