Trends shaping the development of European real estate

As we see in almost every industry around the world, the commercial real estate (CRE) industry is undergoing a revolution of change, and no area is an exception. The global real estate market is undergoing tremendous change; the shift to clean technology, increasing urbanization, and demographic and technological changes are all creating new opportunities for investors in traditional and new asset classes.

Big data and data analytics have transformed real estate, allowing businesses to gain valuable insights into consumer behavior, preferences and trends. The industry is leveraging high technology and multiple data analytics functions, creating valuable benefits such as risk mitigation,''improved stakeholder engagement, accurate value estimates, better market strategies, data-driven insurance and AI support for decision-making.

In today's world, real estate valuation based on data analytics is a game changer. With data analytics models, investors can make informed decisions based on high-quality data and insights. These models are able to combine data from hundreds or even thousands of sources to predict the exact value of an appraisal, thereby optimizing the investment and development process.

Despite the excitement of new opportunities, CRE has faced some challenges in recent years that have reduced demand and increased operational and financial''costs. High interest rates, the economic slowdown, a mixed work environment, a tight labor market and other factors continue to dictate the pace of change despite the economic difficulties. The problem in the real estate market now has more to do with product mix: the market needs real affordable projects in all sectors.

The impact of remote working on real estate

The last few years have been a landmark period for the modern workforce,''as remote working has become an integral part of life. These changes have not only altered our work environment, but have also significantly impacted the dynamics of the real estate market. More companies are introducing flexible working policies and employees are looking for the ability to adapt within work and personal life. The increasing demand for "location independence" (the ability to work from anywhere) directly impacts the real estate market, changing housing preferences and demand for offices in different regions.

This shift in demand is driving urban centers to adapt and redefine themselves to attract businesses and residents. We are seeing the reconversion of commercial spaces into mixed-use areas, the creation of live and work ecological systems, and''Attention is given to amenities and services that meet the changing needs of remote workers and those wishing to balance work and personal life.