Here we explore five major forces that could shape the next decade and examine the implications for the property sector. Major forces include: economic conditions, science & technology, demographic changes, sustainability, breakthrough innovation

1. Fast Forward or Slow Reverse - Surviving and Thriving in Turbulent Times.
Rohit Talwar - CEO - Fast Future Research
How can the property sector prepare for a decade of turbulence? The next ten years could
see more fundamental changes in the global economy, business and society than in the last
thirty. The pace of change appears to be accelerating and business cycles are shortening.
Disruptive innovation, mobile technology and unruly and disrespectful new entrants are
reshaping every sector. Being a one-time industry leader is no guarantee of survival. for
example, even the standard bearers of the mobile revolution are struggling - with Nokia and
Blackberry being valued at a fraction of annual revenues. At the same science and
technology advances are creating new industries with differing approaches for everything
from property to how they fund product development. The property sector is not immune to
these changes - here we explore five major forces that could shape the next decade and
examine the implications for the property sector.
1. Economic conditions. The global economic recovery remains tentative, with sovereign
debt at unsustainable levels. A quickening pace of automation and the adoption of
robotics and artificial intelligence will continue to see jobs replaced by technology and
countries will struggle to find meaningful employment for an ever-growing proportion of
the workforce. In the face of uncertain demand, corporations and professional investors
will continue to display a reluctance to invest large sums and ever-more innovative
solutions will be required for the property sector to create profitable growth.
2. Science and Technology: Rapid technological advances are forcing us to rethink
organisation strategy and business models. For example, in retail, the continued rise of
e-tailing is challenging the high street and those involved in retail property have to think
about a model that will see an increasing volume of short term pop-up retail. We will also
need to explore more diverse uses for traditional retail space - from offices to small
footprint schools and training centres. Delivery of physical infrastructure is also changing.
Advances in construction technology and management now allow the likes of Broad
Group in China to erect a thirty storey pre-fabricated hotel in just 15 days. The issue now
is that legal, contractual and governance procedures cannot keep pace and the sector
must explore how to re-engineer it's administrative processes to adapt to rapidly
changing market needs.
3. Demographic changes. A rapidly aging will re-shape the world in the next two decades.
In the developed world, there is now a 90 per cent chance of living to 100 if you are
under 50 years old. Massive research effort is going into treatments that could extend life
expectancy by 5,10 or even 50 years. The implications are profound for pensions,
workforce management, city design, housing and infrastructure. One trend we expect to
see is a rise in communal living for people aged 20-120.
4. Sustainability - A growing population coupled with an increasingly affluent global middle
class will put pressure on resources. Energy in particular will be a challenge as demand
is expected to outstrip supply and prices could rise rapidly. The UK government has
already agreed that consumers will pay effectively double the current market rate to
finance nuclear construction. Competitive forces mean the sector will need to place a
heavy emphasis on reducing resource consumption, energy usage and the total

2. environmental footprint of buildings. Greening of existing buildings and investment in
alternative energy will be a major strategic thrust for forward thinking property players.
With public funds under strain, demand will grow for more sustainable use of public
facilities. In the evenings school buildings could double as doctors' surgeries,
magistrates courts, libraries and community centres.
5. Breakthrough Innovation - Around the world dramatic new ideas are reshaping the
way we think about cities and physical infrastructure. For example Google has pioneered
driverless cars and New York city is looking to purchase 9,000 in 2015 to streamline
transport, increase efficiency and reduce pollution. 3D printing techniques are already
used to fabricate everything from individual components to complete houses. They will
allow for radical customised new building designs that combine extreme weather
proofing, lightweight structures and a low environmental footprint. New materials and
new thinking such as rapid build could transform the construction sector. Innovative
transport solutions such Hyperloop could deliver rapid inter-city transport at one tenth of
the cost of current alternatives without disrupting existing infrastructure. While the
funders may benefit from such lower cost solutions those in construction may suffer as
total project value falls.
Over the next decade, the property sector will experience agony and ecstasy along with
every other industry. The spoils in the emerging competitive landscape are likely to accrue to
those willing to invest now in thinking about the longer term. This means exploring new
strategies, experimenting with different management approaches and testing out alternative
business models.
We can keep playing the game using our old rules and governing assumptions and hoping
they will be enough. But, in a fast changing and turbulent economic and commercial
environment, hope is neither a viable strategy or effective life belt. The challenge is to let the
game play us - to give ourselves permission to innovate and reinvent our businesses to
survive, thrive and keep adapting as the new nature of the game emerges and evolves.
Rohit Talwar is the CEO of Fast Future Research - think tank and consultancy that advises
clients around the world on the forces shaping the future and how to survive and thrive in a
fast changing world.