The Real Estate market is changing rapidly and by the year 2020, the real estate market is expected to open up new opportunities, attract greater risks and to create new value drivers. Inter-regional migration has already begun to increase as more and more persons are attracted by the wealth that is being created within the region.

The continuation of this trend means that the demand for certain types of real estate will increase as we approach 2020. Middle income housing needs will grow as well as housing that is suitable for the aging population. Now is the perfect time for real estate professionals to make plans to capitalize on any expected opportunities and to put plans in place to mitigate risks.

According to a PWC report, institutional-grade real estate is expected to increase by as much as 55% from US$29 trillion in 2012 up to $45.3 trillion by the year 2020. Urbanization and population growth will continue to put pressure on real estate markets to create suitable solutions for both nationals and expatriates. Emerging economies are where the bulk of the growth is expected to take place.

Already, billions of dollars have been invested in real estate in Oman, Qatar, Dubai, and Saudi Arabia. This investment is expected to continue as we approach 2020. Technological advances will pose somewhat of a threat in some cases as changes will render some types of real estate obsolete.

This will create the need for more sustainable real estate solutions and real estate professionals will have the opportunity to capitalize on this trend. As we approach 2020, the expectation is that climate changes, political factors and changes in behaviour will increase the riskiness of real estate investments.

Forward looking real estate professionals should make every effort to mitigate these risks and to preserve the real estate market.