Current real estate trends and for the next 15 years in Europe

[Antonio Novak]

A third of real estate managers expect a lower return on their assets in 2017. More than half say that the few quality assets available are overvalued.

I present the conclusions of the study, Trends in the Real Estate Market in Europe 2017, prepared by PwC and the Urban Land Institute:

TRENDS OF THE REAL ESTATE MARKET IN 2017

The expectations of investors in the European real estate market in 2017 are marked by the lower availability of quality assets, lower economic growth and lower profitability:

It remains a very attractive market thanks to the relationship between risk and profitability, but most respondents believe that last year's profit levels will not be reached.

Investors believe that the impact of Brexit will be limited to the British real estate market and will not significantly affect investments in the rest of the EU:

To the question of which alternative sectors can be attractive for investors, the most frequent answers are:

• Accommodation for students,
• hotels,
• nursing homes,
• shared service offices.

Germany, the United Kingdom and Spain are the three most attractive European countries to invest. In Spain, Madrid is the city with the highest demand for purchase, while apartments Barcelona is a greater demand for holiday rentals.

THE REAL ESTATE SECTOR IN 2030

What do you consider to be the trend with the greatest impact in the real estate sector between now and 2030?

• Technology and social changes are the most determining factors for respondents. 91% believe that technology will change the way we use real estate assets.
• Cars without driver and incremental use of car sharing, will free the space in the cities, with less space necessary for car parks.
• The Internet will definitely modify the real estate business, both in retail and residential.
• The 3-D printers will provoke that it will not be necessary to store products, nor even to move them, since they can be generated at the desired time and place.
• The analysis of data allows a better understanding of the behavior of potential customers, as well as measuring the experience in the process and the satisfaction of those who are already customers. The use of the statistical information will allow to anticipate future developments, to supply the demand.
• Citizens bet on living in large urban centers. Along with demographic changes, it will boost the collaborative economy in the coming years.In addition, life expectancy has increased, and it is more common to change jobs and location; That's why there are more rents and less home buying

And you, what do you think?