by Jordan McMullen

Original published on AFR here: http://www.afr.com/real-estate/th-real-estate-provides-an-az-guide-of-26-world-real-estate-trends-20160321-gnnjmr#ixzz44EoE30Lb

Global property investor TH Real Estate has identified 26 global trends driving the future demand for real estate.

Three key trends relate to technology, the explosion of Generation Y and the evolving sectors of current economies such as outlet shopping.

“From ageing population to zip codes, we have highlighted the top trends that we believe will have the biggest impact on the future of real estate,” said Mike Sales, the head of TH Real Estate.

“By harnessing the local and specialist expertise of our global network, we have identified the trends that will determine the use of and demand for real estate in the years to come.”

As artificial intelligence takes over half of all US jobs in the near future and equally, the demand for real estate will fall.

“The effect of artificial intelligence on office, retail and logistics assets will be enormous when considering the possibility that artificial intelligence could take over half of all US jobs in the near future,” the report said.

GEN Y A GROWING GROUP 

Gen Y residents ranging from 15 to 33 are increasingly seeking out assets in retail, multifamily housing, and office sectors. They are a growing group out-numbering the Baby Boomer cohort.

“Millennials are more diverse than previous generations and have been shaped by technology, as well as challenging economic times.

These factors have cultivated their unique perspectives on life and work,” the report added.

Wealthy but value-conscious, middle-class spenders are demanding discounted brands which will lead to more leasing of outlet retail spaces.

TH Real Estate Australian head Nick Evans said more Australian investors were incorporating a long-term view into their property portfolios and “understanding the impact of megatrends is fundamental to this type of strategy”.

TH Real Estate believes these trends gathered from an examination of urbanisation, shift of economic power from the west, and the rise of the global middle class will have a major impact on the real estate market in the future.