Real Estate Outlook for 2021

Avatar By: Santula Bishnoi

2020 was a rocky year for real estate. However, with half of the year gone, 2021 is looking more promising looking forward. However, significant questions remain regarding work-from-home, urbanisation, corporate sustainability efforts etc.

At the beginning of 2021, the real estate industry features a lot to reflect.

Companies are grappling with work-from-home policies and, therefore, the role of the fashionable office. Investors are contending with not only a worldwide economic slowdown but the exhaustive cultural shifts influencing how we work, shop, and spend our spare time.

And then, there are the life-changing developments that were happening well before the COVID crisis. Remaining front-and-center are tech-driven disruption, political upheaval, and therefore the push for more ambitious sustainability practices.

Amid the raft of questions on the future for 2021, here are five prominent ones that experts believe will play an enormous position in how the industry moves forward.

 

Figure 1: With work-from-home getting more common, near office concept is gaining traction

 

What exactly does far-flung working mean for the office?

As results from the good work-from-home experiment of 2020 are trickling in, one thing is clear: greater flexibility is about to stay. Companies and employees are still deciding on the perfect office-home balance. Performing from the house is excellent, for instance, because it eliminates the commute. On the opposite hand, people have made it clear they like the office to collaborate or support their managers. "Work-from-home isn't the panacea for satisfying all functional needs and work styles. This means offices got to be redesigned to satisfy new working patterns, while the concept of the "near office" – satellite offices on the brink of where people live – is additionally on the ascendency.

 

Figure 2: Growing urbanization in India

 

Will urbanization stall?

People are flocking to cities – now home to over half the world's population – is among the foremost vital megatrends thus far this century. Whether this mass migration could stall, or maybe reverse, has become a burning topic. The pandemic "struck at the guts of what cities are all about: togetherness, connectivity, shared services, and shared spaces. Yet urbanization will continue; big cities are expected to retain their pulling power, drawing in ambitious work and education. But there are caveats to continued growth. For example, cities will likely be opened up into networks of suburbs and smaller cities, what Kelly calls "distributed urbanization." a part of this ties back to the increase of remote working and digitization, which enables such a shift.

 

Figure 3: Logistics/Warehouse segment is most liked by investors

 

Where are investors setting their point of interest?

How investors refocus during an economic slowdown is usually closely looked. In 2021, a careful but confident approach is predicted to continue, encouraging demand for premium offices  in big cities. There's also been a shift toward sectors that became increasingly important during the health crisis. In recent years, logistics assets, already one of the most well-liked sectors, are set to receive increased allotment amidst the boom in online shopping. Data centers, multifamily, and life sciences land also are increasingly in investors' crosshairs.

 

Figure 4: Corporate sustainability will decide the future of real estate leasing

 

Will corporate sustainability efforts continue in space?

When money gets tight, actions supporting the environment are often among the primary to urge side-lined. even though in difficult times ahead, companies and investors are expected to remain the course. "A viable future is our only future, and therefore the organisations who don't make the turning-point to carbon-neutral expenses now will assume even greater risk to their bottom line," as per sources. "The land sector must play a vital role in establishing a decarbonized environment — helping society respond, prepare, re-enter and ultimately re-imagine a sustainable future."

 

What Role will technology play in real-estate?

Technology for years has become increasingly associate with office buildings, malls, and warehouses. This is often only getting to accelerate in 2021. Landlords and tenants will increasingly adopt intelligent building tools and better understand how safe and healthy their spaces are and how workers are used. Technology, just like the digital twin, is monitoring utilization also as undertaking maintenance optimization. Meanwhile, virtual tours have picked up steam, while contactless technologies are getting standard. "Facial recognition and biometric scanning for access control are not any longer on the list, but the present expectation," says Richard Fennell, head of strategy development, Australia and head of PAM – Australia.

 

 

 

 

2020 was a rocky year for real estate. However, with half of the year gone, 2021 is looking more promising looking forward. However, significant questions remain regarding work-from-home, urbanisation, corporate sustainability efforts etc.

At the beginning of 2021, the real estate industry features a lot to reflect.

Companies are grappling with work-from-home policies and, therefore, the role of the fashionable office. Investors are contending with not only a worldwide economic slowdown but the exhaustive cultural shifts influencing how we work, shop, and spend our spare time.

And then, there are the life-changing developments that were happening well before the COVID crisis. Remaining front-and-center are tech-driven disruption, political upheaval, and therefore the push for more ambitious sustainability practices.

Amid the raft of questions on the future for 2021, here are five prominent ones that experts believe will play an enormous position in how the industry moves forward.

 

Figure 1: With work-from-home getting more common, near office concept is gaining traction

 

What exactly does far-flung working mean for the office?

As results from the good work-from-home experiment of 2020 are trickling in, one thing is clear: greater flexibility is about to stay. Companies and employees are still deciding on the perfect office-home balance. Performing from the house is excellent, for instance, because it eliminates the commute. On the opposite hand, people have made it clear they like the office to collaborate or support their managers. "Work-from-home isn't the panacea for satisfying all functional needs and work styles. This means offices got to be redesigned to satisfy new working patterns, while the concept of the "near office" – satellite offices on the brink of where people live – is additionally on the ascendency.

 

Figure 2: Growing urbanization in India

 

Will urbanization stall?

People are flocking to cities – now home to over half the world's population – is among the foremost vital megatrends thus far this century. Whether this mass migration could stall, or maybe reverse, has become a burning topic. The pandemic "struck at the guts of what cities are all about: togetherness, connectivity, shared services, and shared spaces. Yet urbanization will continue; big cities are expected to retain their pulling power, drawing in ambitious work and education. But there are caveats to continued growth. For example, cities will likely be opened up into networks of suburbs and smaller cities, what Kelly calls "distributed urbanization." a part of this ties back to the increase of remote working and digitization, which enables such a shift.

 

Figure 3: Logistics/Warehouse segment is most liked by investors

 

Where are investors setting their point of interest?

How investors refocus during an economic slowdown is usually closely looked. In 2021, a careful but confident approach is predicted to continue, encouraging demand for premium offices  in big cities. There's also been a shift toward sectors that became increasingly important during the health crisis. In recent years, logistics assets, already one of the most well-liked sectors, are set to receive increased allotment amidst the boom in online shopping. Data centers, multifamily, and life sciences land also are increasingly in investors' crosshairs.

 

Figure 4: Corporate sustainability will decide the future of real estate leasing

 

Will corporate sustainability efforts continue in space?

When money gets tight, actions supporting the environment are often among the primary to urge side-lined. even though in difficult times ahead, companies and investors are expected to remain the course. "A viable future is our only future, and therefore the organisations who don't make the turning-point to carbon-neutral expenses now will assume even greater risk to their bottom line," as per sources. "The land sector must play a vital role in establishing a decarbonized environment — helping society respond, prepare, re-enter and ultimately re-imagine a sustainable future."

 

What Role will technology play in real-estate?

Technology for years has become increasingly associate with office buildings, malls, and warehouses. This is often only getting to accelerate in 2021. Landlords and tenants will increasingly adopt intelligent building tools and better understand how safe and healthy their spaces are and how workers are used. Technology, just like the digital twin, is monitoring utilization also as undertaking maintenance optimization. Meanwhile, virtual tours have picked up steam, while contactless technologies are getting standard. "Facial recognition and biometric scanning for access control are not any longer on the list, but the present expectation," says Richard Fennell, head of strategy development, Australia and head of PAM – Australia.