The real estate sector is now moving past the headwinds from the cyclical environment — i.e., increasing interest rates, falling the gross domestic product (GDP), falling deal flows, and adopting a long-term view of real property assets. The general attitude among experts in the real estate industry we spoke to in the current edition of New Trends is one of cautious optimism. Their goal is to get out of the recent recession and then reposition their companies for steady growth and a strong return.

We are struck by the fact that many individuals working in the field are willing to see past the cyclical headwinds. A real estate agent stated to our team, “We’ll look back in 10 years, and the prices that seem astronomical today will seem like a bargain.”

The year’s emerging trends also confirms two previously contradictory trends in the property market Some aspects of the market appear to be “normalizing” (reverting to pre-COVID patterns) While other aspects appear to have changed due to the outbreak. changed the way we utilize different kinds of properties. These trends are reflected in the way that real estate professionals perceive the future prospects of the 80 markets we studied. Whatever the market trends our view is that businesses must be able to change their strategies and quickly adapt to market trends.

The report’s key themes

• Transformation of the workforce
• Sustainable development and Climate Change
• Capital markets and deals
• Moving to housing that is affordable
• Infrastructure expenditure
• Metaverse

Work from home and return to work

The majority of workers aren’t working in the way they were prior to the outbreak. According to various sources, only a quarter of employees actually work on any given day or at a minimum in the major markets. This has prompted some of the most prominent companies in the field of technology as well as investment banking institutions, like and to issue ultimatums demanding returning to work.

It’s too early to tell if the new requests will lead to increased work hours in offices, as prior requests have not had any evident influence. It could be difficult for companies to get toothpaste back into the tube because there’s an evolution in the way people behave. Most people today aren’t looking to drive to work frequently.

This is causing an effect upon the residential real estate sector. According to the insiders we talked with, that between 10 to 20 percent of office real estate inventory has to be eliminated or used for repurposing. In the office space that remains, landlords will have to perform better at providing tenants with what they need.

While employees and employers decide on their preferred work styles Some companies are still holding onto their offices to be prepared in the event that they require the space in the near future, or due to the fact that they are unlikely to break the lease. More businesses are cutting down on their area or avoiding renewing expired leases. In the end, the vacancy rate is still increasing slowly, in contrast to the rest of the property sector. Some tenants have begun subletting office spaces until leases run out.

There is no way to know for sure the size of office space that will be required by workers shortly. But, we don’t expect a major shift away from office buildings moving forward, even in the most bleak scenarios.