12 Challenges & Opportunities for Real Estate in 2021
Challenges and tech trends will rock the world and Real Estate in 2021. Let’s sneak peek into the near future
1. A Cloudless sky for a brighter future
As mentioned during this summer by riskhedge (here)
“The cloud is one of the most important technological breakthroughs of the last 15 years” yet
“The foundation of the cloud was laid nearly two decades ago”
This decades old technologies is slowly evolving, being supplemented or complemented by Edge Computing
Not only because the emerging services require Zero Latency and IIoT cybersecurity, but also because the world is globally striving for decentralization and shortened supply chains. Energy, Food, and Digital are to be distributed locally.
“Gone are the dark clouds that had me blind…Bright (bright) sunshiny day.” (Jimmy Cliff)
2. Climate change at an ever-faster pace
Since RealEstate represents more than 30% or the energy consumption and circa one fourth of the carbon footprint, the stakes are high, and the solutions are abundant.
Engineers and Architects have a whole array of tools but work under increased pressure.
· Wood or green concrete? Energy-positive, carbon-neutral …
· Extreme weather events, tremors, pandemia …
What is a good choice today may not be seen as such when a project is delivered, not even to mention in 20 years.
Transformation is urgent. And we need the best from our experts
UN Sustainable Development Goals are set in motion. And embodied by continental projects like the European Green Deal.
“It’s now… or Never.”(Elvis Presley)
3. Reinventing the market As A Service: Emerging BaaS
Software as a Service is nothing new. Mobility is offering free floating and short or long term rental, slowly adopting Mobility as a service.
Every market but RealEstate has integrated Pay as you Go and Leasing as an alternative. Except maybe for AirBnB and WeWork models.
A new and digitized approach to sell old services, where every other market has seized the opportunity to reinvent itself and integrate up-sales and cross-sales through digital.
Will it come in 2021? For sure. Why? Because market trends have been supported by standards. And RealEstate had been, till now, without structuring models or standards regarding digital services.
But times are changing. Interoperability, Open protocols and Service Readiness levels are upcoming.
“We are family
Get up everybody and sing” (Sister Sledge)
4. When a Cycle comes to an end: New era of infrastructure
Energy, Telco, Mobility networks are reinventing themselves.
Infrastructure is reinventing itself.
It is also the most natural way to launch a new economic circle, in a post COVID era.
Connecting RealEstate in the midst of a new landscape will deeply impact cities and beyond.
Not only because construction of new buildings will handle new dimensions. Refurbishment, Green deal, change in our habits, won’t move the walls, only the way we connect to networks.
“Our house, in the middle of our street” (Madness)
5. Smart to scale: from building to territory
A city is a collection of Buildings and Utilities connected to protect people, support civilization and facilitate interactions, whether physical, social, commercial or digital.
Smart solutions are coming both ways, top down (from hypervision to action) or bottom up (from sensor to active network). We shall find a viable state in the middle. We may also see a fierce battle to define this middle.
It's a wonderful world (Louis Armstrong)
6. ROI is impossible - Tech trends are too fast for Real Estate
AI, Blockchain, Quantum computing, 3G/4G/5G, 3D printing … Tech trends have a lifespan of 5-7 years, when buildings are build for 50 years, refurbished every 20 years …
The economical equitation is fairly easy : Either we invent or we maximize profit.
But if we consider ROI as a more sustainable approach, how much time do we earn on the planet by using better solutions? ESG & ROI on the same page.
There is a new model ready to steer programs integrating Tech-In-RealEstate.
“Money, Money, Money” (ABBA)
7. Resilience and sovereignty: Customer expectations challenge RealEstate
2020 has shaken the very foundations of civilization by highlighting our weaknesses. Now, in addition to enduring and recovering, it’s time to adapt. Conceiving the new model like an ecosystem, each entity is to become viable per se, in a stable state, and capable of adaptating to another stable state. Resilience.
In the meantime, we see tech ecosystems and geopolitical blocks wrestling to keep their sovereignty. (R)Evolution trends and (Un)Natural selection.
The phygital ecosystem is now very similar to most ecosystems. Biomimicry in the city
“'Cause you're a natural” (Imagine Dragons)
8. Work-from-anywhere: the end of corporate offices? …
We saw empty buildings everywhere, while hundreds of people working from home. Video meetings have kept a link between people. For instance, in Singapore, teams
And we saw opposed trends emerge: Distressed team members desperately looking for human contact. Happy workers enjoying exotic or alternative working locations.
In the meantime, compagnies either suffered from lack of team spirit or adjusted to offer a real freedom of choice.
The correlation of happy workers and freedom of choice is blatantly high.
Compagnies still get the final word to select their headquarters, but to attract talents and/or happy workers, a good balance of collective comfort and freedom of selecting appropriate locations.
« Anywhere I may roam » (Metallica)
9. …or the greatest opportunity for versatile buildings changing purpose several time a day?
And what may happen to existing, deserted offices? Conversion into houses, in locations where every square meter is precious, is a real option.
But what if we adopted a user-centric service-design approach?
Buildings could be used all day long, with multiple, partial purposes. Connecting intergenerational inclusion, diminishing distances to get daily-services, simplifying social and physical interactions while also securing them. The impact on existing buildings is high. But the potential for circular economy to develop is immense. Energy, Water, Services, Mobility, Economy, Shopping, Education, Childcare, Health, Gym… Architects have a brownfield to explore.
Beyond the existing concept of Stadium – Hotel – Casino – Restaurant, everything is possible.
« I'm a shape shifter » (Cassie Steele)
10. BIM, Digital twins, and … ?
And … and … and …
In 2019, in Arup’s report, I read
“To fulfil its potential, the concept of digital twin(s) has to evolve into a real and meaningful construct and not just another idea on the never-ending digital hype cycle.”
Even though there is a lot of hype, as well as real projects and wonderful compagnies around Digital Twins. I still feel uncomfortable to say this excerpt is not true anymore.
2021 is to demonstrate the full power of a D-Twin or pragmaticism shall consider it as a risk instead of an opportunity.
“Ready or not, here I come” (The Fugees)
11. (Cyber)Security and Insurance: vs IoT and AI. Unfair fight
When browsing statistics about cybersecurity reports 2020, shocking statistics pop up.
Compagnies are targeted, Individuals are targeted, NGOs are targeted, Cities and Countries are targeted. In RealEstate, we concentrate multiple weak points and juicy targets.
Similar stats are equally impressive regarding Climatic events, Biohazards, Riots…
Still, civilization is looking for security and safety in cities and shelter in buildings.
Insurance company’s models are toppled.
Risks are more abundant and less predictable.
Here come IoT and AI era. Since 1965, thanks to Lotfi Zadeh and Fuzzy Logics, we know that models can often be replaced by abundant live data and adaptative approaches.
Today we have aplenty and Tech architectures can be built to support adaptative models implemented as part of each asset. Resilience again. And a new way for Insurance and Security to support the emerging business model of whole Smart Cities.
“Now I'm Fuzzy” (Grant Lee Buffalo)
12. Smartcitizens, more than consumers or users
RealEstate customers, end customers I mean, are the end users. In buildings, people live, people do shopping, people work, play, have lunch …
RealEstate is a major part of Cities. And Cities are populated by citizens.
Disintermediation, Circular logics, ESG … we have seen emerging more direct involvement of people than in the past decades.
Reconnecting people to places is probably one of the upsides of 2020, and also a defining trait of the young generations.
Yes, digital native Y and Z generations are expecting digital interactions but also a direct impact on their physical world, a sustainable and desirable one.
Every service, every building, every location will also be part of their vision.
“One Vision” (Queen)
It’s all about trust
In 2020 we have learned a lot, faced dire times and now, we have a lot to fear but opportunities and tools to build a new vision.
Based on a vision, with a clear mission, we have a clear strategy. And involving people and transparency helps build on concrete and on trust. The most solid grounding.
All the best for 2021
#DtoN