Emerging Trends in Real Estate
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Aspects of the real estate industry are normalizing (i.e., reverting closer to their pre-COVID patterns), while others appear to have sustained permanent shifts to a “new normal”, following the pandemic-induced changes in how and where we use different types of properties, according to the PWC Emerging Trends in Real Estate 2023 report.
The real estate sector is transcending what it traditionally perceives as periodic challenges, such as the rise in interest rates, a decline in gross domestic product (GDP), and reduced deal flows. Instead, it is adopting a forward-looking perspective towards real estate assets. The prevailing sentiment among the real estate experts we interviewed for this year's Emerging Trends is one of cautious optimism. Their strategy involves weathering the current downturn and strategically positioning their firms for another phase of sustained growth and robust returns.
It is notable that a significant number of industry professionals are willing to look past the temporary challenges. As one real estate expert expressed, “We’ll look back in 10 years, and the prices that seem astronomical today will seem like a bargain.”
This year's Emerging Trends report also reaffirms two conflicting trends within the property market: Certain aspects of the industry are "normalizing," returning to patterns seen before the COVID-19 pandemic, while others appear to have undergone permanent changes due to shifts in how and where we utilize various types of properties. These dynamics are unfolding in the perspectives of real estate professionals across the 80 markets monitored. Regardless of the prevailing trends, PWC emphasizes the importance of adaptability and swift responses to market shifts for companies in this industry.
