In a recent edition of McKinsey’s new series “The Next Normal”, leading executives and McKinsey experts discuss the future of the real estate industry. While the edition explores high rise 2030, it clearly states and reinforces the trend that has already been in the industry for a while – a shift towards creating people-centric places.
The real estate industry has been traditionally about developing, operating, maintaining, and selling assets. It has focused on buildings and places. According to industry experts, the biggest change we’re going to see in the future is that real estate companies will serve people instead of established buildings.
Already today some real estate developers have started to bring human-centered design into project development, recognizing that citizens are frequently willing to pay more for a secure and vibrant environment. Yet, companies have rarely prioritized human outcomes in a meaningful way. Focusing on resident welfare and viewing buildings as experiences and communities that serve the tenants and make their lives better is a route in succeeding projects that yield a cycle of benefits for residents, investors, and society.
Serving the tenants and creating attractive communities require real-estate companies to find ways to engage with the customers and tenants and to have data-based validation of concepts and development options. Real estate companies that make informed people-centric decisions will not only create more liveable spaces but also ensure high-value deals. And CHAOS solutions help real estate companies in achieving such results.
Companies can engage residents and local actors by sharing development ideas, collecting feedback, and co-creating urban spaces. With CHAOS Crowd™, available for free, projects and surveys can be created and published with just a few clicks.
Image of the engagement app and web tools.
CHAOS allows companies to obtain deep level crowd insights on urban environments and dynamics, such as demographic profile and area character, and analyse socio-economic compositions of areas or whole cities.
Example of CHAOS demographic profile insights.
With CHAOS solutions, companies advance in sustainable decision-making in investment and construction projects while creating spaces designed for citizens and thriving communities. Adopting a people-centric approach into the real estate value proposition is an essential strategic decision to future-proof the business.
Many changes are challenging the real estate industry. The rise in the prices of construction raw materials, the energy crisis and inflation have impacted both property developers and property owners. At the same time, real estate operators are expected to take concrete actions to reduce emissions and increase the energy efficiency of buildings.
Multiple survey results and reports published during recent years indicate that the majority of executives in the RE industry now believe that harnessing the potential of big data and AI offers a huge competitive advantage But how far are we in the transformation process? Has the industry unlocked the full potential of data, advanced analytics, and AI?
Finding potential project sites is a key part of Lujatalo’s profitable business decisions. Now Lujatalo is supported in this by CHAOS, a solution offering location information data and urban forecasts. CHAOS has been implemented in nationwide use at Lujatalo.
