When the automobile first arrived, it changed the world in several ways, not only how efficiently we travelled. Cars have shaped human behavior on a much deeper level than we can even begin to imagine. They have determined where we live, where we shop, and how we get to work, as well as the type, location, and value of Real Estate. These factors are correlated with mobility.
The emergence of EVs, autonomous vehicles and shifting preferences in mobility slowly change the way people and goods move from point A to B. Although this is a topic of the future and speculation will always be a factor, we intend to call attention to this topic. We hope that the reader's curiosity is triggered to realistically imagine the future of mobility and its impacts on the Real Estate industry.
Challenges and Opportunities:
Residental
Although it's difficult to predict precisely the future of mobility, one eminent outcome of this foreseeable future is the acceleration of gentrification* in many urban areas:
Amid rising expectations of more significant usage of autonomous vehicles, there will be a need to rethink other uses for land initially set aside for parking spaces. This newly available land can be used for other commercial or residential real estate purposes, resulting in more high-value areas.
The growing availability of micro-mobility services, as is the case with Uber Bike Sharing and Lime Scooters, can reduce car traffic, creating public spaces that are more enjoyable for all users.
With the rise of EVs, air quality could improve, and road noise might fall.
When considering that there is a current trend for families to search for alternative living solutions outside densely populated areas, a future with safer, quieter, and more walkable neighbourhoods could bring back the city living appeal.
*Gentrification: The process whereby the character of a poor urban area is changed by wealthier people moving in, improving housing, and attracting new businesses, often displacing current inhabitants in the process.
Retail
The future of mobility will also have a high impact on how retail and office spaces are currently positioned and how they operate. In the coming years, online commerce will continue to change dramatically, not only in the way goods arrive on our doorstep but also in defining what a 'shop' is:
The physical size, shape and location of the buildings that supply the retail ecosystem will change due to the need for adaptation to increasing demands for efficiency and consumer convenience, from the warehouse to the point of sale.
Artificial intelligence will be a touchstone at almost every step of the journey.
This could be especially true for grocery and convenience stores as they shift toward e-commerce and increasingly experiment with autonomous vehicle (AV) delivery programs. As new delivery systems continue to scale up, it is expected that many grocers and convenience stores will reassign space for logistics and warehousing operations as they move to cater less to the in-person buyer.
Health Care
Ready access to health care is the biggest reason most seniors move to elder housing. However, as new mobility technologies drive down transportation costs and other traditional in-patient settings, many providers are developing home care services.
As real estate operators plan land purchases, they should consider how both health care and the future of mobility could affect their business:
With more options to receive care in the comfort of their home, many seniors could delay their move to senior homes.
Another possibility is to shift toward mixed-use "55+ communities" built near family-oriented TOD* areas, bringing families closer together.
To deal with the effects of new mobility options, senior living facilities and real estate operators need to adjust their services, taking into account the increasingly independent senior tastes.
*TOD: A development located within a certain distance (10-minute walk) from a public transportation centre.
Conclusion
Change is always challenging, but it tends to bring along many opportunities, and the future of mobility is no exception. The Real Estate industry will be faced with many challenges, and at the same time, flooded with new opportunities to profit. We cannot predict with absolute precision what the future of mobility will look like. Still, we need to keep this in mind to know when to move and capitalize on the future when the time comes.
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