Reimagining Real Estate 2024

In contrast, regional malls and big-box retail centres face ongoing structural challenges worldwide. High vacancy rates and declining rents are common as these properties struggle to compete with e-commerce and adapt to shifting consumer preferences. In response, some owners are reimagining these spaces, repurposing underperforming retail assets as logistics hubs or incorporating healthcare and residential uses where feasible. The success of such redevelopments varies by location, with regions like North America and parts of Europe leading in adaptive reuse, while other markets are still exploring viable strategies for revitalizing traditional retail spaces in a way that aligns with local demand patterns. Multifamily rental housing trends evince both regional distinctions and common global challenges. In the US, the multifamily sector has recently seen a surge in new supply as developers have responded to growing demand; however, this influx is expected to be absorbed in the coming years as population growth and ongoing housing needs sustain demand. Globally, housing affordability remains a persistent issue, with the gap between market-rate and affordable housing especially pronounced in high-density urban centres. Across Europe, Asia and Latin America, rising urbanization is straining existing housing supplies, pushing prices upward and intensifying affordability challenges for low- and middle-income households. In rapidly urbanizing regions in Asia and Africa, the demand for multifamily housing is rising, driven by younger populations migrating to cities for job opportunities and improved quality of life. As urban areas expand, ensuring an adequate supply of affordable multifamily housing has become an urgent priority worldwide, with cities aiming to address these shortages to create more inclusive and sustainable housing markets. Mixed-use properties are increasingly important as they provide flexibility in urban environments where space is at a premium and consumer needs are diverse. Mixed-use developments combine residential, commercial, retail and sometimes industrial elements, creating vibrant, multi-functional spaces that enhance convenience and liveability. Cities across the globe – from New York and London to Dubai and Shanghai – are seeing the value of these integrated spaces, particularly as they support community-building and reduce travel times for residents. In regions like Latin America and South-East Asia, mixed-use properties are becoming a more accepted feature of urban planning, as they help alleviate housing shortages while providing accessible amenities. By combining multiple uses, these developments contribute to urban resilience, enabling adaptability in response to shifts in market demand, whether for office, retail or residential space. The demand for data centres continues to grow globally as digital transformation accelerates across all industries, fuelled by increasing data storage and processing needs. Key regions such as North America, Europe and East Asia remain hotspots for data centre investment, with established technology hubs like Virginia, Frankfurt and Singapore leading the way. However, emerging markets in regions like South-East Asia and Africa are also seeing growth as businesses and governments expand digital infrastructure to support economic development. These data centres are often located close to urban areas to reduce latency and improve service delivery, making connectivity to robust power grids and cooling resources critical. The rising focus on energy efficiency and sustainable operations is driving investments in renewable energy and water- saving technologies in data centres, aligning with broader environmental goals. Beyond traditional infrastructure, including roads, bridges and telecommunications, there is an increasing crossover between real estate and emerging infrastructure asset types such as data centres. Some investors consider certain asset types like life sciences to be real estate, whereas others include them in infrastructure. There may be a need in the future for more formal integration. Buildings are also increasingly seen as potential providers of infrastructure, for example, through the provision of electric vehicle charging. There is an increasing crossover between real estate and emerging infrastructure asset types such as data centres. Reimagining Real Estate: A Framework for the Future 10