MIPIM 2019: technologies, human and new challenges

During this 30th jubilee edition of the International Real Estate and Investment Fair MIPIM 2019, there were three main directions of the industry’s development in the panel discussions and unofficial talks. The impact of new technologies, which will change the way we use real estate, as well as "people centricity", which means human orientation as the key to success, have been widely discussed. The interest of investors was also visible, and consequently the growing emphasis on the development of further, non-standard real estate sectors.

Time for PropTech

In Poland, the concept of PropTech is in its infancy, but now we can say that, as was the case with the introduction of modern technologies to the financial industry, our country will adopt these innovations with open arms. It is already clear that smart solutions in the field of office space and flexible workplaces will be introduced on a larger scale in the coming years. Interestingly, these changes will have a significant impact on the growing concentration on the needs of individual clients. PropTech is therefore not a temporary trend, but a natural consequence of lifestyle changes, availability and maturity of digital solutions. In practice, we are currently the most willing to use technological innovations, including AI, when analyzing data. In the near future, it will help to harmonize data and industry knowledge, which will positively affect the transparency of the entire market.

Human orientation

Green, eco-friendly construction is almost an international standard. Now, in the center of the architects’ and developers’ interest is not the whole environment but the human being. This goes beyond the traditional understanding of the concept of "wellbeing", as it is not limited to the office sector. This trend is visible in Poland in the changing approach to retail investments. In large cities, we move slowly away from standard shopping centers, leaning towards objects with mixed functions.

New sectors, new challenges

In addition to the traditional trend of investments, this year's MIPIM also involved a lot of discussions regarding the development of alternative real estate sectors. Most of the visible changes are driven by the leading social trends and improving standards of living of young people who are not so eager to stay in one location and are not in a hurry to start a family. This does not escape the attention of investors, who see in the new sectors a chance for profit and diversification of the portfolio. Private Residential Sector (PRS), micro-apartments, nursing homes and broadly understood healthcare facilities are the main interest. Taking into account the global statistics included in our report "Insights to Student Housing", in the residential sector dedicated to students, the investment volume has already exceeded EUR 13.5 billion.