The global real estate consulting company CBRE published its new survey, in which it focused more closely on the needs and requirements of people for their housing, work, and shopping. More than 20,000 respondents of various age categories took part in the survey: from Generation Z (18-25 years old) to baby boomers (58+).
Research from CBRE showed that mental well-being, location of work and residence, ESG principles and hybrid work are four fundamental areas that will significantly influence decisions when choosing real estate.
Tasos Vezyridis, Executive Director, Research, Europe at CBRE, also commented on the survey. "The alpha and omega of every decision regarding the real estate market is the consumer. This was also the main reason for carrying out this survey. The results clearly showed us the challenges faced not only by property owners, but also by investors. This is mainly in the residential, retail, office, but also logistics real estate. The results of the survey also showed that in terms of location for housing, interest is mainly in city centers. They also disprove the idea that we all want to work and shop remotely."
ALMOST 40% OF RESPONDENTS WANT TO MOVE, BUT PEOPLE ARE NOT ATTRACTED ABROAD
According to CBRE, 32% of Europeans plan to move in the next two years. A total of 42% of them would choose locations closer to city centers - this is how the younger generation of respondents reacted. During the coronavirus pandemic, on the other hand, people preferred to live in the suburbs. Only 10% of respondents plan to move abroad.
It is also interesting to note that almost half of the respondents who want to move are looking for a rental instead. CBRE experts see this as an opportunity for both developers and investors who focus on the construction of rental properties.
THE FUTURE WISHES FOR HYBRID WORK, UP TO 90% OF RESPONDENTS PREFER IT
The fact is that the pandemic also significantly affected how we work and accelerated the implementation of trends into practice. The survey showed that employees are increasingly returning to the office. Up to 38% of respondents now work exclusively in them. CBRE also looked at the work style we would prefer in an ideal world. Up to 90% of respondents said that they would prefer a hybrid work model, i.e. a mix of remote work and office work. CBRE experts point out that this fact also supports the claim that offices will be important for companies despite flexible work.
It is also interesting to find out what is among the key factors of office visit frequency. For 67% of Europeans, it is the shorter commute time, for 54% the overall location, and thus also what its surroundings offer. According to CBRE, location is therefore one of the main factors when considering new acquisitions, not only in the eyes of investors, but also of office space tenants.
ONLINE SALES ARE GROWING, HOWEVER WE STILL PREFER SHOPPING IN STONE STORES
The truth is that over the last two years the ratio of internet sales has increased and we have been shopping primarily online. However, the survey shows that we still prefer shopping in brick-and-mortar stores, up to 7 out of 10 product categories. The reasons are clear. Consumers mainly enjoy the brick-and-mortar shopping experience and interaction with the product. Up to 61% of Europeans said that the main motivation for visiting a brick-and-mortar store is the opportunity to see the product or try it on.
Experts from the ranks of CBRE also point to the fact that brick-and-mortar stores bring retailers several advantages, not just sales through the cash register. Up to 50% of consumers, for example, come to the store to see the product, and only then buy it via the online store. An important factor in our purchases is also the possibility and form of returning goods. A total of 43% of respondents prefer to return an online order directly in the store, thereby avoiding returning goods via mail. At the same time, given that the costs of e-commerce continue to rise, CBRE points to the growing importance of the so-called omnichannel strategies within retail and logistics real estate.