Real estate 2020 building the future

A paper released recently by international consultants PwC exploring probable changes in the commercial real estate landscape as the industry evolves to remain relevant in line with rapid economic and social change, gives food for thought for agencies in New Zealand.

The Real Estate 2020 building the future report talks about the commercial real estate built environment in the advanced economies of the world undergoing change in response to the well-identified drivers of technology, demographics and environmental issues.(See report attached)

Bayleys national commercial and industrial director John Church concurs that by 2020, the commercial and industrial property market in New Zealand will have a different vibe, with potentially a broader range of opportunities, new value drivers, and an evolving stock and buyer profile.

How the commercial and industrial property sector adapts to twists and turns in both the global and domestic investment environment will ultimately determine New Zealands appeal to investors and portfolio managers, Mr Church says.

We are fielding strong and intensified interest in our property market from offshore investors. New Zealands economic profile, political stability and perceived value-for-money property arena are not going unnoticed.

Every week we see evidence that global real estate trends are changing, whether were talking about a flow of investment money out of Asia, or confirmation that the Australian commercial property market is overheating as pointed out by the Australian Financial Review recently.

The global commercial and industrial property playing field is evolving and we need to be ahead of the curve.

PwC director Chris Money says New Zealand is not insulated from global trends and it cannot afford to be complacent about international commercial property dynamics.

New Zealand relies in part on global funding for debt and to a degree, equity and is increasingly a part of the global market, Mr Money says.

PwCs six core real estate investment predictions outlined in the Real Estate 2020 report are:

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Real estate 2020 building the future