Real Estate Development is in the midst of optimism and transition to a new phase of recovery and expansion after Covid-19.
In the US, the economy – along with Real Estate Development – bounced back in record time. Cities are seeing signs of improved rental growth, with offices, retail premises and centrally located apartment markets benefiting from a sharp increase in hiring intentions that are driving employment and space requirements. A recovery in store-based spending growth is positive for the retail net operating income (NOI) outlook, and signs of capital value growth are showing up in more markets and segments, meaning that retail investment activity is set to increase.
As city property markets return to favor, capital is increasingly finding its way into higher-returning operational assets, wherein returns are linked to long-term trends such as digital transformation, aging populations and environmental sustainability.
Investors are increasingly looking to deploy capital in operationally driven real estate assets. Aging demographics are motivating capital flows beyond senior living toward medical offices and Life Sciences real estate, for which space requirements are set to rise significantly.
As Real Estate Development continues to evolve and investment returns to urban areas for many countries, the real estate sector will require more professionals with the skills and passion to help sustain and encourage further growth during a time of rising construction costs.