In these VUCA times, economic uncertainty is impacting funding and investment challenging developers to adapt to changing economic conditions and find innovative funding models.
The continuing urbanization trend growth will increase the necessity for placemakers to create sustainable spaces with a focus on occupants’ well-being, incorporating ESG principles in the company’s culture and business model, which will consequently enable green financing opportunities.
The understanding of value in the real estate industry
Expanding the understanding of value in the Real Estate industry, beyond traditional financial metrics, is essential.
With a holistic and system approach, the development of environmentally sustainable spaces, incorporating green postulates and circular economy principles, reduces risk, increases asset value, decreases cost in the operational phase, and reinforces the educational aspect, spreading influence and awareness, in the long run is fundamental.
The community-centric and resilient design involves green infrastructure, renewable energy, and energy-efficient systems, creating dynamic spaces that accommodate both work and leisure activities.
A major trend, ESG has become a driving force for future business development. The “E” aspect is already incorporated in companies’ strategies lying ground for the “S” aspect to thrive. That said, rapid technological advancements could be a huge opportunity, a balancing act of incorporating new technologies while maintaining a human-centric approach. That is, ensuring meaningful community engagement, fostering inclusivity in the placemaking process, balancing the diverse needs and perspectives of the community by striving to provide an authentic experience, and giving a competitive advantage.
It is crucial to embrace change and remain flexible. Take the best from global to uphold the local, by promoting a sustainability approach, empowering local businesses and outdoor markets to create a sense of community and support local economies, contributing to the unique character of a place.
In 2024, the industry needs to embrace the continuing development of mixed-use projects, combining commercial and recreational spaces, and creating vibrant, walkable communities that cater to various needs within a single location.
Jovana Cvetković
Jovana Cvetković is Director of Development, Technical Operations, and Innovations, at MPC Properties.
