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The Famous Five

The 'Famous Five': The five demographic megatrends that real estate cannot ignore

In our inaugural ‘megatrends’ report, we outline why the real estate industry needs to be more focused on the bigger picture trends and insights that are materialising – those that will impact the future use and demand for real estate globally over years and decades.

The report highlights five demographic megatrends that we believe will have the greatest impact on real estate:  

  • Urbanisation
  • The rise of the global middle class
  • Shift of economic power from the West
  • Ageing demographics
  • Global interconnectedness

It highlights key data and forecasts relating to each trend, investigating how they may impact the real estate sector over various time horizons and geographies.

At TH Real Estate, we are committed to capturing long-term, structural changes in both occupational demand and capital flows, creating sustainable real estate products relevant to both operators and investors, and future proofing our clients’ interests. Megatrends such as the ones highlighted, should be used in both defensive and offensive strategies. On the defensive side, investors should be mindful of the impact they may have on the long-term viability and relevance of markets, sectors and assets. At the same time, investors should be on the offensive to seek out and exploit those trends that will create new opportunities or result in long-term structural uplift in rents or pricing. Operators in all sectors will be monitoring trends and opportunities in emerging markets, and smart investors should be too. Having identified the most compelling opportunities, the key to investor success will lie in execution. Understanding local market dynamics is key. Although megatrends by definition are multi-jurisdictional, their impacts can be quite local in nature. As such, our top-down analysis is focused on cities rather than countries.

Download the report here

 

Alice Breheny

Alice Breheny

Global Head of Research

Alice's biography