Ten Predictions For Real Estate & Built Environment In 2024 And Beyond

Ten Predictions For Real Estate & Built Environment In 2024 And Beyond

Building on research conducted by Verdantix over the past year, the Smart Buildings (soon to be Real Estate & Built Environment) practice has released ten predictions for real estate and the built environment in 2024 and beyond, uncovering the major trends that we expect to influence firms’ strategies and investments over 2024 and the coming years.

The resiliency of real estate is a global emergency and is finally taking centre stage.
Throughout 2024, the frequency of extreme weather events will continue to skyrocket, and real estate managers will face higher pressure to address climate-resilience concerns head-on. The 2023 Verdantix global survey reveals a dramatic increase in the number of North American executives ranking their portfolio’s building resilience as their highest priority – 27% up from 14% in 2022. As a result, we anticipate a surge in demand for climate-resilience solutions for real estate which, in turn, will influence a range of trends within the market:

• With investment in resilience comes a doubling-down on ESG.
  The software market for energy management and ESG software remains disjoined, therefore we anticipate more than 10 deals between ESG and energy management software providers in 2024.
  
  
• Tech vendor consolidations will capitalize on the decarbonization trend.
  Investment in decarbonization technologies will rebound by 20% in 2024 due to key regulations taking effect and emerging incentives for building upgrades.
  
  
• As building owners invest in green retrofits, they are also considering complete change of use.
  The US will lose at least 30 million square feet of office space to asset-type conversions in 2024, as high office vacancy rates present an opportunity to fill shortages in affordable housing.
  
  
• Asset-type conversions will present further opportunities for those adopting a life cycle approach to the real estate market.
  Verdantix anticipates five major building software providers to make strategic acquisitions to expand their coverage across the building life cycle and cater to stakeholders across the real estate value chain.
  
  
• Solutions driven by AI may provide impetus for acquisitions.
  Vendors will make more noise about their foundational data model offerings, setting the stage for the future uptake of Big AI through ‘Little AI’ wins, which will gradually infiltrate the built environment.
  
  
• AI-enabled workplace mobile apps for employees will become standard by 2025. The growth of AI and natural language processing (NLP) in employee-facing apps will continue, automating workplace processes and driving collaboration.
  
  
• With new technology comes the need for new security.
  Cyber security concerns will reach new peaks in 2024, necessitating a wave of building management and automation upgrades.
  
  
• One area of focus will be CMMS, as the sleepy market wakes up.
  Until now, decision-makers have been slow to update their asset management solutions and CMMS. In 2024, the number of upgrades to existing CMMS will increase by at least 50%, as executives prioritize maintenance strategies and implement appropriate solutions to reduce costs, improve performance and build operational continuity.
  
  
• This market movement is not just limited to the bigger players; it will also affect the mid-market.
  Strategies adopted by smart building vendors will mobilize the mid-market into an upsurge of investment, supported by ongoing trends such as servitization (‘X’aaS) and the shift to the cloud. The mid-market is equally impacted by climate events, which are spurring innovation, thus circling back to the theme of resilience solutions for real estate.
  
  

To gain deeper insight into the predictions made by Verdantix for real estate and the built environment, sign up to our webinar on January 18^th at 4pm GMT (11am EST): Predictions 2024: Real Estate & Built Environment and read Verdantix Market Insight: 10 Predictions For Real Estate & The Built Environment In 2024 And Beyond.