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Demography set to change the real estate market

Eurobuild CEE 19 February 2020
Demography set to change the real estate market
Katarzyna Lipka-Nawrocka, an associate director at Cushman & Wakefield

WORLD Around 693 mln boomers will reach retirement age and 1.3 bln of generation Z are set to enter workforce over the next 10 years, according to the “Demographic Shifts: The World in 2030” report by Cushman & Wakefield.

“Demographic shifts will have a profound impact on the real estate market for years to come. As new generations enter the labour force, the percentage of people aged 55 and over is continuing to rise and cities are becoming increasingly populous. All these factors will drive the growth of each real estate sector. The rise of mixed-use projects as an alternative to single-use real estate, the growing popularity of co-living, including projects targeted at diverse age groups, and the growing importance of urban logistics are just examples of the trends that the Polish market is also going to witness. Developers, landlords and corporates alike will face multiple challenges, while having to create projects and workplaces that appeal to members of several generations with different approaches to life and different expectations about where they live, work, shop and spend their free time,” says Katarzyna Lipka-Nawrocka, an associate director at Cushman & Wakefield.

The study, compares the workforce and GDP growth of more than 137 cities worldwide and conclude that the world’s top-performing cities are in South East Asia and India, which bodes well for the economic growth and strength of the real estate markets in these places. The cities with the highest productivity are mainly in China, while most cities in Europe and North America, which are considered more mature markets, are ranked as low productivity or lagging markets with less potential for growth.

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