Real Estate of the future : 3 major developments in sight

Despite the fact that real estate is one of the most stable industries, it must adapt to our changing requirements. This is why, over the last several decades, our living rooms have increased and our kitchens have (often) opened up: housing and its layout mirror our way of life and connecting with our loved ones. New challenges are surfacing now, prompting many individuals to reconsider their perceptions of their environment and take actual action. Let’s take a look at three recent developments that seem to be reshaping the real estate of the future.

#1 Acquire more affordable real estate

Real estate costs in cities are becoming an insurmountable challenge for a rising segment of the population who are unable to purchase property in major cities. The average price of a home in Paris has risen by 7.3 percent in the last year. According to INSEE, the house price index in the metropolitan region climbed by about 22% between 2010 and 2020. Many families whose salaries have not risen in line with inflation may choose between renting and being distant in order to obtain things that meet their needs elsewhere.

While the covid-19 epidemic has boosted demand for housing in more rural places, cities still house half of the world’s population. This trend might continue and possibly intensify, given that employment, as well as the top schools and health services, is still concentrated in metropolitan regions.

Housing has to be rethought collectively in order to provide more cheap options while still providing respectable, if not enjoyable, living circumstances. This will necessitate strong public action, allowing for the development of residential areas in strategic locations and the comprehensive renovation of urban space, as well as the development of an adequate and qualitative transportation offer, including public transportation and, of course, bike paths.

These changes are taking place, and the objective is to make it easier to become a homeowner on a smaller budget, with a wider range of options and tax incentives such as the intermediate housing legislation, the Pinel law, the “Affordable Rent” plan, or the law. For the old one, Denormandie. Investors will be able to provide more appealing rentals, while owner-occupiers will be able to take on less debt.

#2 Adapt housing to your lifestyle

The second element has to do with how we live in real estate. Starting with the immediate surroundings of the house, avoid crowding into vast, impersonal condos or entirely concrete districts. To achieve today’s balance, new structures are meant to save space, make parking simpler, and increase the quantity of green areas. However, the change continues, with the inclusion of an outdoor area in the majority of newly constructed communal houses, the greening of many roofs or facades, and, in general, the quest for a new, more qualitative way of living in the city’s (small) housing. Housing is no longer seen as only a utilitarian instrument; it is increasingly seen as an important component in the overall balance of life, and as such, it must fulfill the inner ambitions of its residents in addition to the practical features.

The health crisis has produced new requirements inside houses, particularly the need for additional space for more peaceful cohabitation of families when confinement is the norm. Interactions between places have been modified to allow for both greater interactions and the preservation of individual serenity when required.

Furthermore, the option of placing a desk at a location other than the table’s corner is gaining popularity. Businesses and employees alike have reaped the advantages of mandatory teleworking, the most evident of which is the reduction of commute hours, and the desire to maintain the practice, at least in part, is widespread. It’s also vital to be able to work from home comfortably: a dedicated space is ideal, but it comes at a cost that not everyone can afford.

Never mind; combining our first two innovations could be the answer. If telecommuting becomes the norm two to three days a week, a family will save money without experiencing overwhelming difficulty by moving farther from work – away from the city.

#3 Take action against global warming

Finally, in the face of climate change, housing is expected to undergo considerable changes. There are two things that should be made here.

To begin with, modifying the existing housing stock, which the government has been actively pursuing over the last ten years and is constantly being reinforced. These include the Climate and Resilience Law, which went into effect in August and targets dwellings categorized as “thermal strainers,” that is, those classed F or G in the energy performance diagnostic, as well as those classified in E. They will soon be prohibited from being rented, and the communal housing stock is being targeted in particular since it is not well-maintained. Homeowners, on the other hand, have every incentive to act: occupiers to enhance their comfort, lower their energy costs, and boost the value of their home, and lessors to do the same, as well as to maintain their capital in excellent shape.

In this context, rehabilitation of older houses attempts to increase insulation and provide heating and hot water at reduced costs: both financially and collectively by lowering greenhouse gas emissions. energy-related greenhouse Aid, such as the Ma Prime Rénov’device, is available to help with renovation expenditures.

The second axis involves new buildings that are meant to protect residents from extreme heat waves and to reduce the amount of energy used for heating in the winter. The current rules are more stringent than previously, but future owners may take even more steps by choosing the most insulating and quality materials, as well as energy-efficient heating equipment: the greater initial cost will be compensated by reduced bills and a better resale value of the house.

The real estate sector is now on a trajectory that should enable it to adjust to future problems. Being able to live comfortably in healthy housing not far from your place of employment involves lowering the proportion of real estate in the budgets of the lowest and even middle classes. For its part, development must respond to the demands of a population that is abandoning a portion of the housing stock that does not suit its needs. Finally, renovation is lagging in France, which can only be explained by owners’ lack of understanding of the advantages they would get from it. Let us work together to create tomorrow’s building stock, the quality of which will benefit our children!