In 2019 there will be a few technological movements that will shape the trends of Canadian real estate moving forward.
Today many people live and work from increasingly more remote locations. How will the real estate market adapt? New technology being adopted such as VR, AI and Autonomous vehicles will also have an effect.
Economic uncertainty has pushed many industries to address affordability including real estate and construction sectors. Lastly an increasingly environmentally conscious property owner along with higher standards help create sustainable trends when it comes to energy consumption and in new real estate developments.
How do we meet evolving social needs? As residential living spaces become increasingly flexible, they must cater to a more diverse set of needs, while maintaining enough uniqueness to help increase buyer desirability.
Builders are seeing more demand from self-employed workers – who prioritize loft-like spaces that easily convert into home offices and workspaces, as well as people looking to purchase property for rental spaces such as Airbnb hosts who prioritize “socially-focused” architectural design such as open concept living spaces and common areas, as well as smart security technology.
Moving forward, creativity will be key when it comes to the design of real estate spaces. People are looking for unique experiences in their home and work environment and are therefore willing to pay a premium price for it. “Experience-based” architecture is what provides leverage to real-estate-as-service companies such as WeWork and Airbnb, which were designed carefully to curate a response to a particular demographic and lifestyle.
Technological advances in real estate is poised to integrate tech innovations such as immersive virtual reality, machine learning and predictive analytics as a means of providing creative consumer experiences. These will be helpful from the industry perspective, since they will help builders and promoters navigating market uncertainty.
Affordability concerns and investment opportunity will play a big role. As property taxes and interest rates rise, and with many Canadian real estate markets shifting into a heated seller’s market, investors will look outside their own markets of residence in search of investment opportunities in other cities and provinces.
Montreal’s residential construction increased last year, in response to low levels of both condo and family homes being available and should continue rising through 2019. The market has attracted an increased interest from foreign and out-of-province investors, as it continues to remain affordable when compared to real estate prices in Vancouver and Toronto.
There is a high level of demand in the boutique and retail space, where retailers have tailored needs that are constantly evolving as consumer needs do. The key to prolonged success in this field will be to evolve creatively and maintain flexibility. The office market is stable, with major commercial developments planned for the next five years.
Industrial land continues to be in demand – there is currently a shortage of vacant industrial land on Montreal Island, forcing companies to relocate to suburban areas. In the end economic growth is predicted to reach 2.2% in 2019 and 1.9% in 2020.
Of course, for any questions or concerns about protecting your cashflow and investment with a real estate purchase in Montreal, browse through our website and call us for a consultation.