5 Trends in Real Estate that will Affect IT Business by 2020

Modern real estate industry is changing rapidly. Let’s have a look at main trends and how they will affect everything around you by 2020.

Lately, PWC published a report in which it covered some fundamental shifts and challenges the real estate industry is facing with. The report is based on the panel discussion at Singapore World Real Estate Forum and report of Ahmed Naneesh, chief investment officer of a sovereign wealth fund and steward of one of the world’s largest real estate portfolios. He highlighted major trends of real estate industry for 2020 and suggested an efficient strategy for those who are in the industry.

These trends will not only affect the industry itself but will also have an impact on a large number of other business areas, including software development. Here come some major excerpts of PWC report together with the consequences for IT Market.

1. Megacities Emerging

First and foremost, the main real estate trend of 2020 is that there will be even more people on the planet.

With the continuing decline of rural areas, all these amounts of people will head to cities. In fact, by 2050, the urban population will increase by 75% to 6.3 billion, from 3.6 billion in 2010. This will inevitably increase urban density and will lead to the appearance of even bigger metropolises than now. Some of the specialists tend to call them Megacities say that:

By 2025, there will be 37 ‘megacities’, up from 23 today, and 12 of these will be in emerging markets.

People in Megacities will have smaller apartments, and the main focus both in architecture and interior design will be on the efficient use of the space available.

How will it affect IT industry?

Increased density of population and especially in the urban areas will lead to the necessity for smart management of resources like water as well as city-wide energy management. This means that there will be an increasing need for systems able to provide sustainable monitoring and risk control of city operation.

On a personal level, there will be a higher demand in 3D & VR visualizations for interior design, since building a house and designing it properly will become more challenging.

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2. Climate Change

Specialist says that, unfortunately, by 2020 the situation with the climate in the world will only become worse, which might lead to some green initiatives supported by government and international funds. This would lead to the demand in the eco-efficient building as well as heading towards green resources.

How will it affect IT industry?

Climate change might lead to another turn for the Internet of things market in order to use resources more efficiently. Besides, one can forecast big interest in all sorts of purifies for the essential resources like air and water.

3. Rise of Online Shopping

Another trend, which is already hard to ignore is the steady shift of retail business into the Internet. With square meters cost growth by 2020, a large number of current stores will prefer to sell online instead of offline presence.

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Though we will still have malls in 2020, the trend will especially affect music and bookstores, which are supposed to completely move online.

How will it affect IT industry?

Such tendency means the even bigger rise of eCommerce in future. Platforms like Magento and Shopify will become stronger and even new ones might appear. This can also bring about the development of drone delivery and boosts for selling online bigger and quicker.

4. Goodbye, Office Spaces

The increased cost of rent will affect not only stores but offices as well. By 2020 many companies based in big cities will reconsider efficiency of having big office spaces and might lean to more people working from home in order to reduce costs.

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How will it affect IT industry?

This trend goes hand in hand with telecommunication industry development. With more people working long distance demand for efficient telecommunication software will increase and form a steadier niche.

5. Smart Homes

And finally, one can’t imagine real estate future without technology advancing the way we live. Smart homes will definitely be a big trend by 2020, making our lives easier, safer and simply more enjoyable.

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How will it affect IT industry?

This means that one can expect plenty of IoT devices to appear. They will increase their abilities and work with a bigger amount of data in order to automate the majority of daily procedures. Integration into city tech systems and smart management will also play a big role.

As you see, technology has all chances to go beyond the current understanding of it and even transform real estate industry, putting together all areas of our lives. This way it makes perfect sense to focus on your resources now and make sure you invest into:

• A global network with local knowledge and good government relations
• Specialist expertise and innovation
• Cost management and scale
• The right people

Following these trends, we can expect future to bring to our lives efficiency, quality of service and innovative thinking.

And what do you think about these trends? Share with us in the comments!