In less than a decade, the global real estate landscape has been shaped by seismic shifts in how we live, work, and invest. Investors could see these changes as risks or opportunities to be seized. The traditional playbook no longer applies, and those who understand the new dynamics of global property demand, the distinct advantages of different markets, and the lasting impact of remote work will be best positioned to build resilient and high-performing portfolios.

Post-pandemic changes in global property demand

Following the COVID-19 pandemic, some new trends emerged in global property demand. With people spending more time at home, there’s been a surge in demand for properties with more space, both indoors and outdoors. This has led to a re-evaluation of what constitutes a “premium” property. While many offices and retail businesses closed, the demand for industrial and logistics properties has soared, driven by the explosive growth of e-commerce.

Comparing emerging markets vs. established ones

Real estate investors today face a fundamental choice between established and emerging markets, each offering a unique risk-reward profile.

Established markets

• stability and mature regulatory frameworks
• lower risk and more predictable returns
• lower growth potential
• ideal for investors seeking stable income streams

Emerging markets:

• opportunity for rapid growth and higher returns
• fueled by fast-paced economic development, urbanisation, and a growing middle class
• higher risks, e.g. potential political instability and underdeveloped legal systems

How remote work impacts property values worldwide

With employees and companies embracing remote and hybrid work models, there has been a profound and lasting impact on both commercial and residential property values. People now value flexibility and work-life balance enough to pay extra for it or even sacrifice a pay rise. As a result, properties in suburban and rural areas that offer more space and a better quality of life have seen their values appreciate, as people no longer need to endure long commutes. Property values in some dense urban centers have stagnated or declined due to a decrease in demand for traditional office space and rising vacancy rates. This has spurred a wave of office-to-residential conversions, as developers seek to repurpose underutilised buildings to meet the growing demand for urban housing. With remote work, factors like high-speed internet and home office potential are as important as proximity to city centers and add a new dimension to investment potential worldwide.

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