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Will building skyports for flying cars become the latest “must have” feature for luxury residential buildings? Will there be human settlements on Mars? Despite decades-old predictions, it doesn’t appear that they will revolutionize real estate any time soon1. However, there are trends that have impacted real estate in the near term, ranging from climate risk to improved data availability.

5 Real Trends for 2020


5 Real Trends for 2020

  • Climate risk: Getting to the bottom line 

  • We now see physical climate risks materializing within real estate portfolios today. As a result, investors realize that mitigating and managing these risks are likely to be today’s problems, not tomorrow’s.

  • Places are for people 

  • No building is an island, cut off from all around it. They are inextricably linked to the built environment, community and society that surround it. Investors want to understand these impacts in more detail.

  • The many dimensions of real estate risk

  • As a complex asset class real estate has a great many dimensions of risk to consider that combine in a myriad of different ways and more than ever we need new ways to coherently analyze these risks.

  • Beyond ‘location, location, location’

  • The drivers of real estate value have almost always been more diverse and complicated than the adage “location, location, location” would suggest. What emerging drivers can we start to consider in a systematic way?

  • Everything is relative, and only that is absolute

  • As real estate has become a larger part of investment portfolios there is increasing need to formally wrap its analysis into overall portfolio management which may require a new level of data and analytics.

   


FURTHER READING


FURTHER READING

 

Read the full blog from Will Robson, for a deeper dive into the five emerging real estate trends for 2020.

Will Robson
Executive Director,
Global Head of Real Estate Solutions Research,
MSCI

 

Read the blog

 

Numerous technological barriers stand in the way of these innovations. See, for example:“Brown, D. “Possibility or pipe dream: How close are we to seeing flying cars?” USA Today, Nov. 4, 2019.
Clifford, C. “Elon Musk defends plans to build a community on Mars after downbeat NASA report.” CNBC, Aug. 2, 2018.


2019 Real Estate Trends

2020 Emerging Real Estate Trends

2020 Emerging Real Estate Trends

Read the top five trends for 2020 in full.

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