ULI, PwC find real estate’s response to looming obsolescence delayed by challenging business environment
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