In the wake of significant global changes in recent years, we’ve seen numerous significant shifts and emergent trends in the real estate landscape and, as we stand on the cusp of 2024, the sector is poised for more transformative shifts that promise to reshape the way we buy, sell, and experience homes.

So says Yael Geffen, CEO of Lew Geffen Sotheby’s International Realty, who adds: “In the rearview mirror of 2023, we witnessed the ongoing demand for dedicated home offices and flexible living spaces, with interest in smart technologies skyrocketing, heralding a new era in the way we design and utilise our living spaces.

“Sustainability also came to the fore as increasingly eco-conscious consumers sought homes with green features and a growing number of developers prioritised eco-friendly construction practices.

“Looking ahead, the evolution continues, and the real estate landscape is moving further and further from the traditional, becoming a canvas for innovation, blending cutting-edge technology, sustainability, and community-centric design.”

Geffen believes that the following key trends will shape the real estate market in 2024:

1. Tech-Driven Transactions:

Technology continues to be a driving force, with an emphasis on streamlined and tech-driven transactions. Blockchain technology is expected to play a pivotal role in property transactions, offering enhanced security, transparency, and efficiency.

Smart contracts, powered by blockchain, aim to simplify and expedite the complex process of buying and selling real estate.

2. Virtual Reality (VR) in Property Tours:

The traditional open house began a digital makeover in earnest during the pandemic and this will continue with virtual reality becoming an integral part of property tours.

Virtual reality platforms not only enables prospective buyers to explore properties remotely, but also offers immersive and realistic experiences which both caters to the convenience of remote viewing and also enhances the overall efficiency of the home-buying process.

3. Rise of Sustainable Homes:

Sustainability will continue to take centre stage as eco-conscious buyers seek homes that align with their environmental values. Builders and developers are focusing on green construction practices, energy-efficient designs, and eco-friendly materials.

Sustainable features, such as solar panels, energy-efficient appliances, and smart home technologies, are becoming key selling points in the real estate market.

4. Work-from-Anywhere Influence:

The work-from-anywhere culture continues to influence real estate decisions and, as remote work becomes a long-term reality for many, homebuyers are prioritising properties that offer dedicated home offices, flexible workspaces, and robust internet connectivity.

Suburban and rural areas are gaining popularity as buyers seek larger homes with outdoor spaces for both work and leisure.

5. Community-Centric Living:

Community-centric living is starting to take precedence, especially amongst millennials, as buyers increasingly prioritise neighbourhoods that offer a sense of community, amenities, and a high quality of life.

Walkable neighbourhoods, communal spaces, and proximity to essential services are key factors influencing purchasing decisions and developers are responding by designing mixed-use developments that integrate residential, commercial, and recreational spaces.

6. Affordable Housing Solutions:

The demand for affordable housing solutions continues to grow, prompting innovative approaches to address the affordability challenge.

Modular and prefabricated housing, co-living arrangements, and community land trusts are emerging as viable solutions to make homeownership more accessible. Governments and developers alike are exploring creative avenues to bridge the affordability gap.

7. Personalisation through AI:

Artificial Intelligence (AI) is transforming the real estate experience by offering personalised insights and recommendations. AI-driven algorithms analyse buyer preferences, predicting and presenting properties that align with individual tastes.

From personalised home searches to predictive market trends, AI is enhancing the efficiency and personalisation of the home-buying journey.

8. Coordinated Smart Home Ecosystems:

The smart home revolution is evolving into a coordinated ecosystem, with interoperability being a key focus and buyers are now looking for homes with integrated smart technologies that seamlessly connect various devices and systems.

From smart lighting and thermostats to security and entertainment systems, the demand for cohesive and user-friendly smart home ecosystems is on the rise.

9. Adaptive Reuse of Spaces:

Adaptive reuse gains momentum as developers repurpose existing structures for residential purposes. From converting commercial buildings into loft-style apartments to transforming warehouses into trendy living spaces, adaptive reuse not only adds character to neighbourhoods but also addresses the demand for unique and unconventional housing options.

10. Wellness-Centric Design:

Wellness-centric design principles are influencing the architecture and layout of homes and features like biophilic design, which incorporates natural elements into living spaces, are gaining popularity.

Homes with ample natural light, indoor greenery, and features that promote mental and physical well-being are becoming sought after in the real estate market.

11. Rural Retreats and Second Homes:

The allure of rural retreats and second homes is on the rise as individuals seek escapes from urban congestion - and to diversify their property portfolios.

The desire for tranquillity, outdoor amenities, and spacious properties is driving demand for homes in rural and vacation destinations. This trend is fuelled by a shift in priorities and a re-evaluation of lifestyle choices.

12. Properties That Offer Added Value

With the cost-of-living skyrocketing and the economic landscape looking bleaker by the day, a growing number of people are looking for properties that deliver more than a roof over their heads – they want one that can accommodate a side hustle.

So we will be seeing more and more demand for homes with cottages/flatlets which can be rented out or affordable investment units in a popular tourist areas – especially those favoured by foreign visitors who benefit from a favourable exchange rate,

“As buyers and developers adapt to these trends, the real estate landscape will continue to evolve to meet the changing needs and expectations of a dynamic and discerning market,” concludes Geffen.

“And embracing these trends will not only redefine the way we perceive real estate but also pave the way for a more innovative, sustainable, and personalised future in homeownership.”