The 10 global real estate trends for 2023 according to Avison Young

For Nick Axford, Principal and Chief Economist at Avison Young: “Understanding social, economic, environmental, geopolitical and commercial factors is essential to how we support our clients in the current environment and help them design relevant and resilient real estate strategies for the future. The current environment is certainly characterized by economic uncertainty, however, our 10 trends for 2023 demonstrate that many opportunities are still to be seized.”

Among the factors influencing real estate strategies and investment decisions:

• A new financial deal: The rise in interest rates should be long-term, with a concrete and direct impact on real estate values;
• The search for operational excellence: Real estate complexes require more than ever proactive asset management in order to adapt assets to user expectations;
• The emergence of new health assets: Countercyclical assets par excellence, health assets are popular with investors. At the same time, we are witnessing a change in the health sector with, in particular, a phenomenon of regrouping of health professionals within modern and ad hoc groups;
• The Metaverse applied to real estate: Beyond cryptocurrencies and virtual worlds, the technologies underlying Web 3.0 find many applications within the real estate sector.
• (De)globalization 3.0: The war in Ukraine and the post-pandemic disruptions add to the factors of relocation and proximity that modify production and distribution models.
• Critical Mass: Growth in the use of CLT as a structural element in commercial construction supports the decarbonization of real estate.
• New breath of life: Green leases have been around for some time, but will become increasingly important as regulation increases transparency around building performance and the rights and obligations of landlords and tenants need to be integrated into Lease contracts.
• Revitalized cities: Cities are coming back to life after the pandemic, but flexible working is here to stay and some regions are facing challenges. Data analysis helps make sense of what is happening in real time.
• Maximum impact: Cities face challenges. The increased private sector focus on social value (the “S” in ESG) and the search for value-added investment opportunities at scale is driving increased private sector engagement and public-private partnerships for regeneration urban
• Cost of living: Investment in residential real estate has grown dramatically. The affordable housing sector can be challenging, but the opportunity is huge and the demand will only increase.