TECHNOLOGY will make real estate developers stand out in today’s new business environment to fit new market demands.
Real estate services and consultancy firm JLL Philippines said real estate stakeholders should pivot the industry’s challenges into opportunities amid the declining supply and demand of spaces across all asset classes.
“As consumer behavior has changed to become even more digital, retailers have also expanded to online stores and delivery services to cater to consumer demand. What we are seeing now in e-commerce and on-demand services will continue to be the norm moving forward,” Janlo de los Reyes, JLL Philippines’ head of research and consultancy, said.
De los Reyes said upcoming real estate trends are starting to shape the market.
Operational changes
“In terms of the existing buildings, in the short term, we’re seeing operational changes employed by stakeholders as opposed to physical changes. We are not going to see immediate significant changes in the structures that we have now,” he said.
He said landlords are more focused on employing extra measures in managing their buildings to cater to changing operation patterns and current health and safety protocols.
He also added that in the long term, developers may revisit the density of their buildings when the previous trend was to densify spaces to maximize their real estate portfolio.
Sustainability, wellness and technology will be the main themes for future developments to make structures pandemic-proof.
Currently, the real estate market is adapting through technology and pivoting towards alternative and interim uses to keep businesses afloat.
“The market is employing domestic focused recovery. Retail stakeholders are going hyperlocal for now. They are targeting the community they are located in. Likewise, hospitality is focusing on domestic tourism,” he said.
Alternative sources of revenue
He also said that some stakeholders have taken on more extreme adaptability measures for alternative sources of revenue.
This includes temporarily repurposing of facilities to other uses, shifting to new revenue sources, and addressing short-term demands such as accommodating frontliners for the residential and hospitality sectors to boost occupancy.
“While the traditional asset classes are anticipated to remain challenged for the remainder of 2020, we project some silver linings to emerge that may buoy the real estate market. The real estate investment trust, emergence of other asset classes such as logistics and data centers and infrastructure projects are some of the bright spots that may support the recovery of the industry,” he added. (JOB with PR)