7 Trends in Real Estate Development

Real estate development is a complex and challenging business. From single-family homes to office buildings and industrial properties, developers work hard to ensure their projects succeed.

The industry is experiencing new challenges as government regulators are implementing requirements for companies to measure, report, and publicly disclose their real estate assets’ performance according to environmental, social, and governance (“ESG”) criteria.

The Impact of Technology

Real estate developers rely on modern technology to promote their properties, facilitate transactions, and communicate with customers. These solutions also enable buyers to view properties remotely, which saves them time and money.

Another real estate tech trend is using chatbots to automate customer interactions. These bots can answer frequently asked questions and help potential buyers navigate buying.

In addition, real estate development companies with experts like David Adelman have been using smart contracts to make real estate transactions more transparent and secure. These blockchain-based agreements can speed up verifying property titles and completing sales.


Sustainable real estate development focuses on building and operating buildings in an environmentally responsible manner. This can include using renewable energy sources, incorporating green spaces, and using eco-friendly materials. It can also include measures to reduce waste and carbon emissions.

Governments worldwide pass laws requiring real estate investors to measure and disclose their environmental, social, and governance (ESG) performance. These requirements drive the industry to adopt sustainability practices in new and existing assets.

In addition, consumers are increasingly seeking eco-friendly options in their purchases. This has resulted in significant growth in the green property market.

The Impact of Demographics

Demographic trends significantly impact real estate demand and the type of properties in order. Major demographic shifts can have a lasting effect on real estate trends for several decades. Staying attuned to these changes can help real estate professionals adapt their business models and invest more efficiently.

For instance, improved infrastructure like better road and rail connectivity will naturally boost local property prices with these amenities. Government policies, including deductions and subsidies, can affect real estate demand.

For example, suburban neighborhoods tend to attract families with children, which can drive the demand for schools and cultural amenities.

The Impact of Globalization

Real estate has been traditionally considered to be a local and non-tradable asset. While news headlines may grab attention when foreign investors purchase a luxury apartment building, globalization has quietly reached even the most local industries.

Across the globe, there is an intense race to acquire land assets and properties in global hubs. This international influence is attributed to economic interdependence and increased travel, communication, and cultural exchange.

It also affects institutions such as multinational corporations, governments, and even colleges and universities, which often pursue specific economic policies and align business practices across borders.

The Impact of Mobility

Real estate development is a multifaceted industry. Property developers must consider various factors, including demographics, generational shifts, remote work, and other trends that could impact real estate markets.

The COVID-19 pandemic caused many people to reevaluate their living arrangements, leading them to look for larger homes and more space. This trend may continue once the pandemic ends and people return to their everyday lives.

Meanwhile, people in large cities are moving to surrounding towns to maintain access to urban amenities. This may cause a reduction in office space in downtown areas.

The Impact of Climate Change

Physical climate change risks, such as flooding and drought, can significantly impact real estate development. A recent study showed that properties in areas prone to flooding and other disasters could depreciate by up to 40 percent.

Fortunately, these risks can be mitigated with innovative strategies such as building sea walls or elevating buildings in high-risk areas. Additionally, the demand for environmentally sustainable buildings is growing.

Intelligent real estate players will build climate intelligence early on and use it to understand direct and indirect financial impacts. Through the climate transition, they will identify opportunities to decarbonize and create value for tenants, investors, and communities.

The Impact of Sustainability

Sustainable real estate development is becoming more popular as investors focus on eco-friendly investments. Investors prioritizing sustainability in their investment strategies can stand out from their competition and attract a larger pool of tenants.

Sustainable buildings are designed to consume less energy, lowering long-term operating costs. They also use non-toxic materials and promote healthier indoor environments for their occupants.

Sustainable developments can also provide local benefits like conserved resources, reduced strain on aging utility infrastructure, increased economic opportunities, and new green jobs. Furthermore, properties with green features have higher resale value and are more attractive to buyers.


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