Several global trends are impacting the factors that influence supply and demand in the real estate sector. New assets are emerging while others are becoming obsolete and being discarded from the pool of investment opportunities.
Technology, climate change, demographics, affordable housing policies, globalization - all of these will continue to have an impact on real estate markets. The impact will vary from country to country and region to region, and these global forces will interact, leading real estate market participants to assess which ones affect them most and how.
Let's take demographics as an example. Countries like Portugal have to deal with an aging and declining population. What does this mean for the real estate business? Is the right approach to invest in healthcare infrastructure such as senior residences and the hospitality and leisure segment, while distancing from residential and commercial real estate?
Technology has also been a determining factor, bringing about significant changes in the sector. How has the digital transition affected supply and demand in real estate? For over a decade, electronic platforms have been facilitating online shopping, significantly impacting the demand for retail space, while driving significant growth in the logistics segment. Will this trend worsen for retail? Will the dynamism of the industrial and logistics segment continue? How will the preferences of younger generations and hybrid telecommuting affect shopping centers, street retail, and office spaces?
On the other hand, technology has positively influenced the operation and functioning of markets. Big data, computing power, AI and Machine Learning, DLT, and blockchain - all of these are shaping real estate markets with new tools and new players, enhancing productivity, creating new investment opportunities, and facilitating transactions in real estate markets. Notable examples include online buying and selling portals, Automated Valuation Models, and Smart Real Estate applications, particularly in building management.
Real estate market participants are also adapting to climate change, with mitigation and adaptation strategies to manage climate risks. Since the ability to maintain and increase yields is the main driver of real estate asset value, developers need to adopt solutions that help mitigate transition climate risks - focusing not only on reducing the carbon impact of their buildings but also on sustainable construction practices - and adapt to physical risks by investing in resilient assets.
It is challenging to predict the impact of technological advances, climate change, demographics, and social policies, as well as regulatory changes on commercial and residential real estate markets. However, real estate market participants should try to understand the risks and opportunities that these forces of change bring and how they will affect how people occupy space - their demand for offices, retail, and residential spaces - as well as investor dynamics.
In 2003, we embarked on a unique journey by launching the first postgraduate programme in Real Estate Management. The size and nature of the real estate sector have changed significantly over the past 20 years. Since then, there have been economic and financial crises, and major changes in how people work, live, and shop.
We believe that our 348 graduates from the 17 editions of the programme have benefited from lessons on the theory and practice of real estate management and have thus prepared themselves to drive change in their organizations to anticipate and address the many challenges that have arisen. They have definitely contributed to the professionalization of the sector.
We will continue on this journey of lifelong learning together, providing new programme participants with integrated and relevant training in management applied to the real estate business, contributing to the advancement of their professional journey.
Artigo de Ana Paula Serra, codiretora da Pós-Graduação em Gestão Imobiliária.