Nery Alaev examines generational differences regarding property in Europe.
In Europe, a generational shift has and is set to bring about change in the property market as different generations of Europeans (X, Millennial and Z) look for property with different needs and values in mind.
I’ve decided to look into the predictions made by one of the world’s largest real estate consultancies about the next decade of European real estate.
A change is afoot
Norms and values
The difference between generations has been highlighted by Savills, in its report Megatrends in European real estate, is key to the changes in the region that are predicted.
For example, the report states that:
„Millennials and upcoming Z Generation have been using technology and the internet since early childhood, are used to easy and free access to a wide choice of services and are open to sharing information and goods, but are also conscious of ethical living.
Generation X has broadly embraced the flexibility and convenience offered by technology, but remains attached to ownership and status.“
The statement implies that generations Y and Z are more technologically inclined than their older peers and thus, are more likely to make property-based decisions with technology in mind. This means that, for instance, a Millennial may choose to live in an area with strong internet connections or access to services relating to technological products such as smartphones and tablets.
Rapid urbanisation
Urbanisation is increasing in the region, with countries like Belgium, The Netherlands and Denmark expected to have over 90% of their respective populations living in urban areas by 2050.
This means that there will be more impetus to look into the planning of cities on the part of planners and architects in the coming years – this could lead to greener, less industrial cities with more green spaces.
Nery Alaev
Nery Alaev is the current Director of ESN Investments GmbH, which engages in acquisition and development of commercial and residential property in Germany and Austria.