How will we LIVE in FUTURE?
The reality is that these growing numbers of elderly people will all need to live somewhere. In many ways, an ageing population spells opportunity for the real estate industry, which can design age-appropriate apartments with easy access to medical services and other essential facilities. These apartments should be located close to key infrastructure, such as public transport and shops and be designed to support those, for example, who need to get around in a wheelchair.
In future, the young as well as the old will have increasingly different accommodation needs than in the past. A growing number of school-leavers will be interested in pursuing higher education, spurred on by the fact that we increasingly live in a knowledge- and service-based economy. This will call for more student accommodation to be built which suits modern requirements. Urbanisation has already taken hold and this trend is set to continue as more people flock to cities to take advantage of the numerous available employment opportunities there. By 2050, almost three quarters (68%) of the global population will live in cities, according to the United Nations. Despite all the prevalent talk about working from home, only certain employees will be able to take advantage of this new opportunity. The remainder, such as key workers, will still need to work and live in cities.
In other words, it’s clear that dramatic demographic change is ahead. However, low construction rates mean that we will only see gradual change to cater for these changing demographics in the real estate industry. In fact, it will take 10-20 years before we reach a tipping point.
Dr Marcus Cieleback, PATRIZIA Chief Urban Economist
“Everyone is interested in how we will live in 10 years’ time. I always have a very simple answer to that: in 10 years we will live as we do today because over 90% of all housing units we will live in already exist today.”
1 What residential adaptations may be needed?
As these prevailing demographic trends take hold, we will have to adapt our approach to where we will live and indeed, how.
2 Addressing affordability
In today’s harsh economic climate, rents are increasing faster than income, pricing people out of the housing market. Homes are simply unaffordable for many.
3 Suitable student housing
This focus on enjoying work, rest and play can equally be seen in the purpose-built student accommodation (PBSA) sector.
4 A bespoke proposition in Berlin
Last but not least, the Havelufer Quarter in Berlin’s Spandau district, managed by PATRIZIA, exemplifies the innovative approach to residential property that the real estate industry will need to take in future to fall in line with residents’ evolving needs.