Nearly half of Europe’s real estate leaders are concerned about buildings becoming obsolete in the next five years in the face of long-term upheavals in demographics, climate change, technology and lifestyles, according to research by ULI and PwC finds in its Emerging Trends in Real Estate® Europe 2023. The 20th annual survey of European real estate sector leaders’ expectations for the year ahead concludes that Europe’s real estate faces a major challenge to be fit for purpose.
Most of the 900-plus industry leaders that participated are making long-term resources available to address the fit-for-purpose agenda. The challenging business environment has reshuffled priorities to financing and high construction costs, and scarcity of resources has made real estate renewal more expensive to achieve, delaying much-needed investment.
The industry is uncertain about when obsolescence will start to show in values. Interviewees acknowledge
