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ULI Europe and PwC Emerging Trends in Real Estate® 2023 Webinar:
20 years of Emerging Trends

Moderator
Angus Johnston
UK and EMEA Real Estate Leader
PwC@ULIEurope

ULI Europe

ULI Europe and PwC Emerging Trends in Real Estate® 2023 Webinar:
20 years of Emerging Trends

Presenter
Sophie Chick
Head of Research
Urban Land Institute - Europe@ULIEurope

ULI Europe

Emerging
Trends in RealEstate Europe2023
In the Eye of the Storm

#ETRE23

Emerging Trends in Real Estate Europe 2023 │ In the Eye of the Storm

5

The industry evolves#ETRE23
Factors that have had the biggest impact on the real estate industry
over the past 20 years
Significant impact

Low interest rates/QE
Impact of the global financial crisis
Use of technology
Urbanisation/densification
Rise of ESG
Climate focus
Wider ESG focus
Impact of COVID-19 pandemic
Impact of ecommerce
Attractiveness to talent
Rise of alternate real estate
New business models
Dispersed workforce
Increased focus on the tenant
Real estate as a service“Hotelisation” of real estate
0%

10%Emerging Trends in Real Estate Europe 2023 │ In the Eye of the Storm

20%

30%

40%50%

60%

70%80%
6

Key themes#ETRE23

Capitalmarkets

On the path tonet zero

Taking ongreater
responsibility

Emerging Trends in Real Estate Europe 2023 │ In the Eye of the Storm

Customer
service

Real estate
as a product

Cities andplacemaking

7Capital markets#ETRE23

Evolution from an opaque industry to one integral to the financial markets
Post GFC, European listed real estate has grown from €174bn to €441bn

European non-listed real estate funds have expanded from 45 to 536 vehicles since 2001
A post GFC change in lending philosophy
Where global capital is deployed in the future will be influenced by disruptive forces

Emerging Trends in Real Estate Europe 2023 │ In the Eye of the Storm

8

On the path to net zero
#ETRE23
Expected catalysts of change inreal estate over the coming 20 years

The refurbishment of existingbuildings and embodied carbon

The ESG Agenda
Climate Change

Vast capital expenditure is needed

Changing customer demands
Technological innovation
Decarbonisation

Regulation is key and seems to bewelcomed by the industry

Real estate as a service
Geopolitics

Technology – smart buildings,
green building material

Digitisation, robotic
War for talent
Deglobalisation&supply chain resilience

Climate resilience, adaptation andbiodiversity

Global migration
0%

10%

20%

Emerging Trends in Real Estate Europe 2023 │ In the Eye of the Storm

30%

40%

50%

60%
9Taking on greater responsibility#ETRE23
Factors considered important for the successful organisational transformation of the realestate industry over the next 20 years% think important
Running an envirnomentally and socially responsible business
Creating social impact alongside financial returnResponding to prop-tech and integrating technology into businessprocessess
Hiring new, non-traditional real estate skills
Aquiring operational skills
Increasing diversity within the organisation
0%Emerging Trends in Real Estate Europe 2023 │ In the Eye of the Storm

10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Customer service#ETRE23

A shift in focus from landlords to tenants and occupiers, and more recently, customers
Space-as-a-service designed around needs of the occupiers they want to attract

Broadened business models to provide design, development, management & operations
Reputation and brand will be key
Diversity in real estate and hiring outside traditional skill sets

Emerging Trends in Real Estate Europe 2023 │ In the Eye of the Storm

11

Real estate as a product#ETRE23
2004
1 - Shopping Centre
2 - Residential
3 = High Street Shops
3 = Industrial/Warehouse
5 - Retail Parks
6- Central City Offices
7 - Manufacturing
8 - Surburban Offices

Emerging Trends in Real Estate Europe 2023 │ In the Eye of the Storm

12

Real estate as a product#ETRE23
2004

2008

1 - Shopping Centre
2 - Residential
3 = High Street Shops
3 = Industrial/Warehouse
5 - Retail Parks
6- Central City Offices
7 - Manufacturing
8 - Surburban Offices

1 - City Centre Shopping Centres
2 - Central City Offices
3 - Hotels
4 - Shopping Centre
5 = High Street Shops
5 = Industrial/Warehouse
7 = Retail Parks
7 = Housebuilding for Sale
9 - Surburban Offices
10 - Manufacturing

Emerging Trends in Real Estate Europe 2023 │ In the Eye of the Storm

13

Real estate as a product#ETRE23
2004

2008

2016

1 - Shopping Centre
2 - Residential
3 = High Street Shops
3 = Industrial/Warehouse
5 - Retail Parks
6- Central City Offices
7 - Manufacturing
8 - Surburban Offices

1 - City Centre Shopping Centres
2 - Central City Offices
3 - Hotels
4 - Shopping Centre
5 = High Street Shops
5 = Industrial/Warehouse
7 = Retail Parks
7 = Housebuilding for Sale
9 - Surburban Offices
10 - Manufacturing

1 - Retirement/Assisted Living
2 = Serviced Offices & Co-working
2 = Healthcare
4 - High Street Shops
5 - Logistics Facilities
6 - Private Rented Residential
7 - Student Housing
8 - Hotels
9 - City Centre Shopping Centres
10 - Housebuilding for Sale
11 - Serviced Apartments
12 - Data Centres
13 - Central City Offices
14 - Self-Storage Facilities
15 - Industrial/Warehouse
16 - Parking
17 - Social Housing
18 - Surburban Office
19 - Business Parks

Emerging Trends in Real Estate Europe 2023 │ In the Eye of the Storm

14Real estate as a product#ETRE23
2004

2008

2016

2023

1 - Shopping Centre
2 - Residential
3 = High Street Shops
3 = Industrial/Warehouse
5 - Retail Parks
6- Central City Offices
7 - Manufacturing
8 - Surburban Offices

1 - City Centre Shopping Centres
2 - Central City Offices
3 - Hotels
4 - Shopping Centre
5 = High Street Shops
5 = Industrial/Warehouse
7 = Retail Parks
7 = Housebuilding for Sale
9 - Surburban Offices
10 - Manufacturing

1 - Retirement/Assisted Living
2 = Serviced Offices & Co-working
2 = Healthcare
4 - High Street Shops
5 - Logistics Facilities
6 - Private Rented Residential
7 - Student Housing
8 - Hotels
9 - City Centre Shopping Centres
10 - Housebuilding for Sale
11 - Serviced Apartments
12 - Data Centres
13 - Central City Offices
14 - Self-Storage Facilities
15 - Industrial/Warehouse
16 - Parking
17 - Social Housing
18 - Surburban Office
19 - Business Parks

1 - New Energy Infrastructure
2 - Life Sciences
3 - Data Centres
4 - Self-Storage Facilities
5 - Retirement/Assisted Living
6 - Healthcare
7 = Logistics Facilities
7 = Affordable Housing
7 = Social Housing
10 - Private Rented Residential
11 - Student Housing
12 - Leisure Hotels
13 - Coliving
14 - Industrial/Warehouse
15 - Serviced Apartments
16 - Serviced Offices & Co-working
17 - Leisure18 - Housebuilding for Sale
19 - Central City Offices
20 - Retail Parks
21 - Parking
22 - Business Hotels
23 - Business Parks
24 - High Street Shops
25 - City Centre Shopping Centres
26 - Out of Town Shopping
27 - Suburban Offices

Emerging Trends in Real Estate Europe 2023 │ In the Eye of the Storm

15Cities and placemaking#ETRE23

Only relatively recently have mixed used schemes been widely accepted
Making cities better places to live and social inclusion

15-minute cities and smart cities
Self sufficient neighbourhoods, producing their own food and energy
Designed and managed by sophisticated and adaptive AI

Emerging Trends in Real Estate Europe 2023 │ In the Eye of the Storm

16

Thank you

ULI Europe and PwC Emerging Trends in Real Estate® 2023 Webinar:
20 years of Emerging Trends

Juliette Morgan,

Nussar Hussain

Duncan Owen

ESG Consultancy Director,
GenslerFounder and Partner,
Brookland

Chief Executive Officer,
Immobel Capital Partners@UrbanLandInstULI EuropeWe value your feedback and would appreciate if could take a minuteto complete the Zoom survey before you leave.

Please give us any other feedback, questions or suggestions for other topics
by emailing europe.events@uli.org
Thank you

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