11 Global Real Estate Trends to Watch In 2023 & Further

Picture this: a world where homes generate their own energy, communities foster a strong sense of belonging, and your smartphone controls every aspect of your living space. The realm of real estate is evolving at a rapid pace, with the future poised to witness remarkable shifts in the global property landscape. Join us on an exhilarating journey as we explore ten captivating trends that shape the future of real estate. From sustainable living to tech-driven transformations, fasten your seatbelts and prepare to discover the exciting world of real estate in 2023.

  1. Sustainable and Green Buildings

“The global green buildings market is anticipated to grow at a healthy 14.3% CAGR in the forecast period (2020- 2027) | ~ Market Research Future (MRFR) report.”

As we become increasingly conscious of our ecological footprint, sustainable and green buildings are set to take center stage. In 2023, developers and homeowners are prioritizing eco-friendly features such as solar panels, energy-efficient systems, and verdant green spaces. Embrace a lifestyle where your home not only saves you money but also contributes to a greener planet.

  1. Rise of Co-living Spaces

“The luxury co-living market in India is expected to grow at a compound annual growth rate (CAGR) of 17.2% from 2019 to 2024 | ~ JLL Report”

Traditional housing options are making way for a new phenomenon: co-living spaces. These vibrant communities offer shared living arrangements, communal amenities, and a vibrant social fabric. Whether you're a young professional seeking affordability or a student craving a lively environment, co-living spaces will redefine the concept of modern living.

  1. Smart Homes and Technology Integration

“The global smart home market size was USD 86.48 billion in 2020 and is expected to grow from USD 99.89 billion in 2021 to USD 380.52 billion in 2028, growing at a CAGR of 21.1% during the 2021-2028 period | ~ Fortune Business Insights”

Welcome to the era of smart homes! In 2023, the futuristic dream of controlling your lights, security systems, and appliances with a tap on your smartphone is becoming a tangible reality. The integration of smart home technology is revolutionizing our living experience, making our homes more convenient, efficient, and secure.

  1. Shift towards Suburban Areas

“The population of the large suburban counties has increased by 25% in the new century, outpacing the nation's overall population growth (16%). | ~ Pewresearch”

The pandemic has ignited a profound reassessment of our lifestyles. With remote work becoming the new norm, suburban areas are witnessing a resurgence. The allure of larger living spaces, access to nature, and a sense of community draws individuals away from bustling cities. 

  1. Real Estate Investment Trusts (REITs)

“India recorded 6.85 percent year-on-year (YoY) growth in the total leasable area of listed Real Estate Investment Trust (REITs) | ~  Windmill Capital”

Investing in real estate without the complexities of direct ownership? Enter Real Estate Investment Trusts (REITs). These investment vehicles allow individuals to pool their resources and invest in a diversified portfolio of properties. With liquidity, diversification, and potential stable returns, REITs offer a compelling investment opportunity for both seasoned and novice investors.

  1. Flexible Workspaces

“The flexible workspace market in India is expected to reach 126 million square feet (msf) by 2027 | ~ report by IndiQube-CRE Matrix”

The way we work is evolving, and so are our workspaces. In 2023, the demand for flexible workspaces is soaring as remote work is gaining prominence. Co-working spaces and serviced offices adapt to cater to the needs of the modern workforce, providing flexible lease terms, cutting-edge technology infrastructure, and collaborative environments. 

  1. Increased Foreign Investment

“India's real estate sector attracts $26.6 billion in foreign investments over five years | ~ Colliers Report”

Real estate transcends borders, and 2023 is witnessing a surge in foreign investment in global property markets. Investors seeking stable returns and diversification will be drawn to countries with favorable investment policies and promising growth potential. Prepare for a transformation of the global real estate landscape as cross-border transactions fuel economic development.

  1. Raise In Real Estate Backed Structured Debt Products

“the total value of real estate investments in India reached $6.3 billion in 2020, with structured debt accounting for a significant portion of that figure | ~ Report by Cushman & Wakefield”

With growing need among investors to fetch high and fixed returns while being able to rely on the security of real estate, there’s a growing demand for asset backed products in the realm of real estate. These innovative financial instruments are capturing the attention of investors seeking diversification, attractive yields, and exposure to the real estate sector.

  1. Urban Revitalization Projects

“By 2045, the world's urban population will increase by 1.5 times to 6 billion. City leaders must move quickly to plan for growth and provide the basic services, infrastructure, and affordable housing their expanding populations need. | ~ World Bank”

Cities are the vibrant cores of our societies, and in 2023, urban centers are undergoing remarkable revitalization projects. Abandoned industrial areas are to be reborn as mixed-use spaces, seamlessly blending residential, commercial, and recreational amenities. So, Witness the metamorphosis of neglected regions into dynamic, thriving communities.

  1. Aging Population and Senior Housing

“The demand for senior living units is currently estimated at 5.6 lakh only, but it is likely to hit 1.2 million homes by 2025, a number too large to ignore from a business point of view. ~ Financial Express”

The world's population is aging, and the demand for senior housing options is on the rise. In 2023, developers are prioritizing age-friendly communities, equipped with accessible designs, healthcare facilities, and recreational amenities.So, watch us embrace a future where the needs and desires of older adults are seamlessly integrated into the fabric of society.

  1. Real Estate Technology (PropTech)

“The global PropTech market size was valued at USD 25,145.1 million in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 15.8% from 2022 to 2030.| ~ Grand View Research”

Innovations such as virtual reality property tours, blockchain-based transactions, and AI-powered property management platforms are redefining how we buy, sell, and manage properties. Let’s embrace the power of technology to streamline processes and enhance our real estate experience.

  1. Shift In Investors Perspective to Real estate Backed Alternatives 

“By 2025, total alternative investments under management are projected to reach $17.2 trillion—a four-fold increase since 2010. | ~ NASDAQ”

Due to the rise in interest rates, financing costs, inflation-driven labor and construction expenses, and stringent borrowing conditions, real estate investors will increasingly explore alternative financing options. These alternatives encompass private equity firms, crowdfunding platforms, fractional ownerships, venture capital investments, and syndication deals, all of which provide more favorable rates and terms compared to traditional sources of financing.

Way Ahead 

The real estate industry in 2023 is a gateway to a new era of boundless innovation and growth. With sustainable living, collaborative co-living spaces, smart homes, and adaptable workspaces on the horizon, real estate is set for a remarkable transformation. To stay ahead, embrace the possibilities, explore new horizons, and be at the forefront of global real estate trends. Assetmonk is leading this change, offering cutting-edge investment opportunities. From high-return coliving spaces to structured debt products with a guaranteed 17% IRR and more, we provide a gateway to lucrative investments in 2023. Don't miss out - invest today and become a savvy investor!

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Q1: What are the top global real estate trends to watch in 2023?

The top global real estate trends to watch in 2023 include sustainable and green buildings, the rise of co-living spaces, smart homes and technology integration, the shift towards suburban areas, the growth of Real Estate Investment Trusts (REITs), the demand for flexible workspaces, increased foreign investment, the emergence of real estate technology (PropTech), urban revitalization projects, the demand for senior housing, and the popularity of alternative financing options.

Q2: Why are sustainable and green buildings considered important in the real estate industry?

Sustainable and green buildings are considered important in the real estate industry due to the increasing focus on reducing environmental impact. In 2023, developers and homeowners prioritize eco-friendly features such as solar panels, energy-efficient systems, and green spaces. These buildings not only save money but also contribute to a greener planet.

Q3: What are co-living spaces, and why are they gaining traction?

Co-living spaces are shared living arrangements that offer communal amenities and a vibrant social environment. They are gaining traction because they provide affordable housing options and foster a sense of community. Whether for young professionals seeking affordability or students desiring a lively atmosphere, co-living spaces redefine modern living.

Q4: How is technology integration shaping the real estate market in 2023?

In 2023, technology integration is revolutionizing the real estate market. Smart homes, where lights, security systems, and appliances are controlled through smartphones, are becoming a tangible reality. This integration enhances convenience, efficiency, and security, transforming the way we live.

Q5: Why are suburban areas experiencing a resurgence in 2023?

The pandemic has triggered a reassessment of lifestyles, and remote work becoming more prevalent has led to a resurgence of suburban areas. The appeal of larger living spaces, access to nature, and a sense of community attracts individuals away from busy cities.