We have spoken about what to expect in 2017 in Malaysia but we are yet to touch on the subject of the future of real estates in general. What would happen to the real estate industry in the future?? Here we discuss some of the biggest changes that are bound to happen sooner or later.
Times change, and with time a lot of other things change as well… One of those things is the demand. Experts say that by the year 2025 people could generate revenues of US $335 billion just from renting goods. This alone would affect the real estate industry a lot since people will look less to buy and more to rent based on their flexible millennial lifestyle. Roomz.asia already predicted this change which is the reason we are focusing on the rental market which is becoming bigger and bigger by each year.
Let us now bombard you with some interesting numbers and facts that might blow your mind because it certainly did blow ours. Did you know that 40% of global energy is consumed by real estate sector annually!? Another problem is the fact that 20% of global greenhouse gas emission originate from buildings. Those same buildings use 40% of global raw materials.
It might sound a bit too far fetched despite the fact that the data comes from the World Economic Forum report on the real estate industry from the beginning of this year but if you think about it, it actually makes perfect sense. Look at it this way: As long as humanity exists there will be a need for sheltering people which is one of the basic human needs. Sheltering means more buildings are built and building on its own requires some resources which are the raw materials used for construction and lots of energy to power the machinery and transport.
With the fast increase rate of environmental consciousness around the world to reduce the climate change, real estate industry will come to the point where it will need to reconsider its traditional building approach and look more into environmentally friendly solutions. We are already seeing more and more buildings designed to be environmentally friendly (Green Building) so the changes already started happening (video example below). But are they fast enough?
One more thing we are going to witness eventually is the death of traditional financial industry as we know it. Perfect example is the new FinTech industry. For those of you who are unfamiliar with it, FinTech companies are the new disruptors who use the power of the internet to ‘destroy’ the middlemen in the financial industry (banks) by making financial services far more efficient and consumer friendly, and at much lower costs. This particular industry will reflect on the Real Estate Industry drastically reducing the role of banks and intermediaries because such is the power of algorithms.
All these changes will take some time to happen but they most certainly will come true and it already started influencing the way younger generation think to the point where before making and long term decision we need to consider if whatever we are trying to achieve will even be necessary in the future. Roomz.asia is following the futuristic path so stick to us and you’ll be safe.
Type you soon!
