MIPIM is one of the largest forums of the international property industry and regularly attracts more than 26,000 participants from over 100 countries, here are some of the recent trends highlighted at MIPIM. Some of the themes are familiar but all point to a rapidly changing property environment.
Cities will account for 60% of the world’s population by 2030. This will create a shift with future real estate investment focused on cities, however growth will create social and financial pressures as urban density continues to rise.
Cities are growing faster than ever before, with our own population soon to reach 25 million. This growth is going to create a need for much collaboration between communities, developers and government. The challenge is to both increase density but also ensure sustainability to nurture viable long-term growth. Traditional ways of planning and managing cities will all need to change.
Nobel Peace Prize laureate, Lech Walesa has pointed to the need to build cities with the young generation in mind. We have been asked to imagine global cities where urban design is less an expression of social hierarchy and more a reflection of collective solutions.
Technology is impacting and helping the real estate industry meet many of the challenges highlighted to optimize the design and use of buildings and how cities function. Ideas are varied and include windows that also generate data and electricity from sunlight. Look around any CBD and that potential is immediately apparent. Adaptive traffic control informed by data and AI will help reduce traffic delays and accidents.
Drones are Coming
Drones are predicted to play a big role in how future cities function. It’s been estimated that over the next 2 years around 41-trillion dollars will be invested in drone technology covering such diverse services as traffic control, crowd management and disaster relief.
Finance and real estate are interlinked. Crowd funding, thanks to an entire range of new internet platforms will take off and become a finance option for individual home builders and buyers. A key aspect will be a greater spread of risk among a variety of investors both short and long-term that creates greater flexibility for anyone seeking funds.