People in Europe are going to vastly change their views and preferences in terms of where they want to live and work, and this dramatic change that is forecasted to take place in the next 10 years, expects the real estate industry to be able to adapt and answer to these changes, says Savill, in a report by Adrian Bishop in OPP Today.
Changes on the economical, technological, societal and behavioral aspects of Europe are the key areas that will greatly shape the demand for as well as the location of real estate in the country, says Megatrends in European real estate publications.
According to Savill, the dominant X and the dynamic Y generations are going to be the key driving force in Europe's housing and commercial property industries.
"Generations Y (Millennials, aged 21-34 today), Z (born after 2000) and Generation X (tomorrow's ageing population, aged 35-49 today) are the generations that will shape lifestyle patterns in the next 10 years - generations with different backgrounds and all technologically savvy, but with different priorities and motives.
"Millennials and upcoming Z Generation have been using technology and the internet since early childhood, are used to easy and free access to a wide choice of services and are open to sharing information and goods, but are also conscious of ethical living.
"Generation X has broadly embraced the flexibility and convenience offered by technology, but remains attached to ownership and status."
It also says that population growth, age structure, as well as employment conditions will be the major determining factors for where housing and commercial property demands will stand in Europe.
"The rising number of smaller households, the need for affordable housing and assisted living, the demand for flexible working space and the requirement for convenience and accessibility of publicly used buildings are only some of the factors that could potentially affect the property market."
The urban areas have also dramatically expanded in terms of the number of people that are opting to stay in the cities, and a forecast that by 2030, 60% of people or 5 billion will be living in the urban areas as compared to just 30% during the 1950.
Because of information technology and the growing digital world, it's easier for urban planners to develop efficient and manageable 'smarter' cities, meeting the ever-expanding knowledge and use by people of current technologies.
"Our industry is trying to adapt and pre-empt the changes that new technologies bring to people's habits and lifestyle.
"It is not clear yet if technology will lead to a dramatic reduction in the need for physical space or will change the way space is used."
With the rapid urbanization also comes the increasing need to create sustainable planning policies as well as the development of green buildings. The good thing is that the present generation has strong awareness of the sustainability of our planet and have been taught since their early days on how to and the importance of 'Reduce, Reuse, and Recycle.'
"People from this generation feel that it is their responsibility to make the world a better place. They are more likely to choose to live in smart cities where they can cycle to work or use public transport. They may choose to work for companies that demonstrate corporate responsibility and have green values. They prefer to consume responsibly made products and they will try to use sustainable technologies."
