Whilst it’s impossible to predict the future, we can recognise the impact of emerging trends, and gauge their potential momentum.
After asking three industry experts to shed some light on emerging global property trends, technology’s place was confirmed to be paramount.
Likewise, the ever-growing presence of property crowdfunding platforms confirms the industry’s relevance and potential.
Mary Clare Bland, Editor and Key Researcher at Moving2Madrid
“Technology is the biggest game changer the world has ever seen.”
Moving2Madrid provides property search, negotiation and management services to help people from all around the world live and invest in Madrid. The company started in 2010 as a simple way for busy international professionals to find the perfect property.
Mary Clare Bland believes,
“Technology is the biggest game changer the world has ever seen. I think the disruption it has caused to traditional financial markets is just beginning. Technology will continue to make it easier for individuals to access financial markets, by-passing big investment banks and traditional exchanges. As traditional market makers fall by the wayside, I think we will see increased volatility and fragmentation in financial markets.
“As blockchain technology becomes increasingly efficient, we will see new currencies that will continue to make markets more global. Crowdfunding sites, specifically real estate crowdfunding sites, will make it much easier for individuals to hold real estate in their investment portfolios. I think that crowd-funding sites and blockchain technology, combined with the disruptive effect technology is having on traditional capital markets, means that international real estate will become an increasingly larger percentage of investor portfolios at the expense of equity and other financial instruments.
“Changes to global wealth concentration will create new real estate investors. China appears to be on an enormous property buying spree, which will only gain momentum. India is often over-looked, but Indian entrepreneurs and technology experts will continue to gain wealth, drive the economy and create another country of eager property investors. Global wealth will continue to become more concentrated among the elite, driving up property prices in international global cities like Paris and New York.”
John Engle, President of Almington Capital
“Technology is transforming the property investing landscape.”
Almington Capital is a merchant banking, venture capital, and consulting firm. John has consulted with a number of real estate companies, including private equity funds, developers, real estate marketing firms, and construction firms.
John Engle believes,
“Technology is transforming the property investing landscape. An explosion of crowdfunding platforms has allowed individuals to invest in properties in their own countries, as well as around the world. Moreover, there are specialized private equity firms that have used crowdfunding tools to expand their latest funds, giving access to a range of high-quality real estate that was previously beyond the reach of ordinary investors.
“On the design front, there is also a remarkable sustained boom in multifamily housing. In the US, this is due to the twin demands of foot-loose millennials wary of buying houses and baby boomers downsizing and moving closer to urban centres. This is already emerging as a trend around the world, as ageing populations place greater demands on fewer workers.
“Also, there is a major movement toward sustainability and green living. This is driven in part by many governments’ efforts to curtail waste and combat climate change. But it is also being driven by consumer demand: individuals are demanding amenities that reflect a responsible lifestyle and place growing premium on housing that reflects that aspiration. Likewise, as tech companies remain the major driver of office leasing in many of the world’s major cities, their greater emphasis on responsibility and sustainability is likewise putting pressure on developers and building managers to promote those values.”
Andrew Gardiner, CEO and Founder of Property Moose
“The collision of technology and property is yet to reach peak innovation.”
Property Moose is one of Europe’s first property crowdfunding platforms. With a minimum investment of just £10, investors around the world can utilize the platform’s sophisticated technology and create property portfolios in just a few clicks.
Andrew Gardiner believes,
“To paraphrase Mark Twain, they’re not making land anymore! This means there will always be a demand for traditional real estate activities – buying, selling, renovating and of course living. Because of our insatiable appetite, I predict that there will be a constant invention of ways to use, invest in and build properties.
“We can already see an evolution within the world of investing – the growth of crowdfunding platforms specifically for property investment are springing up in every country. The creation of peer-to-peer networks, like spare-room rental sites, will also expand and could include other aspects of networking, such as using driveways and gardens to store vehicles.
“The collision of technology and property is yet to reach peak innovation, and changes to the way anyone can design their dream home, and order it online are a few years away.
“Although not a new vision, homes are not yet universally networked or ‘smart’, but when this changes, it will be one of the greatest transformations since electricity or plumbing were installed in homes.”
To learn more about the evolution of PropTech, click here.
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