As we entered the new decade, few could have predicted the challenges that we have faced during the year.
While the disruption and volatility of fluctuating oil prices and global trade wars were already bubbling, even those with a crystal ball must have missed the seismic economic shifts that were set to play out by Covid-19. In the cacophony of noise surrounding the pandemic and changing perceptions, for real estate investors it is an uncertain and rather confusing period.
Recent research by our team at Savills is summarised in the latest Impacts report, an annual look at the most pressing issues facing the industry and its investors. By exploring immediate issues and more long-term challenges, we can help to identify how the real estate sector might evolve over the coming years, and crucially for Middle Eastern investors looking to protect and grow their assets, where the investment opportunities are.
Climate change is a major theme for real estate, with building and construction accounting for 39% of the world’s carbon emissions. As global building stock is set to double by 2050, the use of modern methods of construction (MMC) to create sustainable buildings and reduce carbon footprints, will become increasingly important. The demand for smart buildings that incorporate future-facing technology will increase.
Similarly, the transport sector is set for dramatic change over the coming years. It is the second-largest planned projects sector in the Middle East, with Saudi Arabia and the UAE heading the innovation. Vehicle automation, high-speed Hyperloop capsule delivery and airborne