Three to watch: New lifestyles require new real estate products
Three real estate segments have defined the real estate market for decades — residential, office and retail. Today, however, as the real estate industry adapts to new realities, it is beginning to offer investors a more varied selection of assets to which they can allocate capital.
Lifestyles have undergone noticeable transformations since the turn of the millennium. Our social and economic lives are increasingly driven by mega-trends such as demographic change, growing individualisation, urbanisation and increasing flexibility in the employment world. As a result, the ways in which real estate is being developed have also shifted. One response to society’s changing needs involves so-called “managed living properties” for every stage in human life. These include day nurseries, serviced apartments and healthcare real estate. In the years to come, these products will become subject to growing demand because they reflect emergent social and residential habits.