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How Smart Cities are Changing Real Estate

We have smartphones, smart cars, smart homes, and whether you know it or not, smart cities. Developers and city planners across the world are implementing new technological features into things like building design, public transport and security. As a result of this, cities are getting smarter and almost taking on a life of their own. The future unquestionably involves smart cities in a major way, so how are smart cities changing real estate?

Smart Cities are Changing Real Estate

According to the World Bank, the percentage of people living in an urban or city setting in 2019 is 82 percent. The rate at which people are moving to cities worldwide has never been faster. This global trend toward city living means that cities are growing rapidly to accommodate for the influx of families and individuals who flock to urban areas in search of better jobs, public transportation and amenities. As cities are being built up, urban planners are adding features that are supposed to make life easier and safer for a larger number of people.

These features look different for every city. In Australia, for instance, where the weather is typically warm and temperate, builders are incorporating the natural landscape and environment into building design to save money on air conditioning and allow workers and residents to feel in touch with their surroundings. Opening up parts of the building allows for natural and soft light to shine through and for breeze to circulate and cool the space naturally. In hot environments, where air conditioning is one of the most expensive factors in maintaining a building, this saves an incredible amount of money.

Often when one thinks of smart cities, they think of increased surveillance, data collection capabilities and technological advancements. While these are all features that are being introduced and incorporated into cities, they are not the features of smart cities that are having the largest impact on San Diego Property Management. One of the most important factors that arises from smart cities is traffic. An increasingly livable city attracts residents who want to live in a more connected and efficient city. These people are the ones who will be buying houses and condos, shopping at the new storefronts and patronizing the public venues. It is the job of real estate to accommodate the needs of the changing city and population.

Current trends in cities show that retail is not dying as many seem to think. People still need to shop and many of their purchases are still made in person rather than online. Appealing to a consumer in a smart city requires technology and design. Many store-owners are deciding to strip their buildings down to a minimalistic space and design to portray a cleaner and streamlined storefront. One of the keys to operating in a smart city is including smart technology that allows people to reach your location with ease, such as a smart parking program that allows people to guide themselves to your location at the best time of day.

The technology that is the brain of smart cities can help real estate professionals by giving them insight into the behaviors of consumers and customers. Services like parking garages and public transit can all be made better and more measured by the use of technological advances, and many of these technologies involve a way to capture statistics on use and habits. These data sets are invaluable to real estate professionals and allow them to anticipate trends in buyer behavior. As cities become smarter, so too must the real estate professional. The new technological changes provide exciting opportunities for real estate in the 21st century.