‘Smart’ is now the modern normal. The word itself is different slightly in meaning within the last Ten years, as new technologies emerge boasting much more features that really help us manage and gaze after our way of life every day. Now it’s more established to satisfy someone using a cell phone today, while watches, TVs, washers and lighting systems inside our homes are increasingly becoming connected and attuned to your needs. Now, these real estate trends think about with a bigger target, and we’re needs to see a new modern phenomenon emerge: the smart city.

What is a smart city?

The U . n . has predicted the global population will hit 9.7 billion in 2050, with 66% of men and women projected to live in cities. The smart city is part of this vision: our metropolises will become increasingly urbanised plus more tech-heavy, with drones, autonomous vehicles and robots already being introduced into our modern service structures today.

These future cities will leverage data and technology to generate life convenient for residents. Frost & Sullivan define the definition of as “cities built on ‘Smart’ […] solutions and technology which will lead to the adoption with a minimum of five from the eight […] smart parameters”.

These parameters include smart energy – which we’ve already seen beginning, with heating systems controlled from a phone – along with smart buildings, transport, healthcare, infrastructure, technology, governance, education and finally, the rather mysterious smart citizen. Regarding real estate trends, the ‘smart buildings’ parameter may have, and it is having, the greatest implications and opportunities for your industry.

What is already happening?

Smart cities – or rather, the 1st incarnations of which – exist already. Barcelona and Singapore both have a base a higher level connectivity and integrated municipal services. Among other things, Barcelona has one of many cleanest surface public transport fleets in Europe, a bicycle sharing network and impressive green energy credentials. Its pneumatic waste management system automates rubbish collection in some districts, while underground delivery chutes decrease truck and noise pollution.

In the united states, Denver and Panasonic have worked together to designate a mixed-use development centre, Pena Station Next, being a hyper-connected community: a ‘smart city’ of sorts. Pena Station Next already has smart city solutions for example street lights mounted with security camera systems and sensors, in addition to smart bus stops and parking meters. Here, Road X, an ‘intelligent’ Interstate 70, is already underway.

What does this suggest for real estate trends?

Connected, smart buildings potentially have to cut back energy use, trigger preventative maintenance, and reduce operating costs. Utilising sensor technologies to trace information such as motion, light, temperature and water drainage, then automatically analysing the information to identify inefficiencies, and responding inside a non-intrusive manner could all become part of how buildings function around us. As outlined by JLL, smart buildings could improve general efficiency levels by 15-20% inside the newbie. In-depth building and occupant data means greater transparency in actual estate transactions, allowing potential renters and buyers to improve understand assets and commercial investors to improve analyse the likely footfall.

Agreement industry has a lot of opportunities here to embrace smart city solutions and shape the evolution of those areas. The most apparent initial benefit for your property industry would be the enthusiasm and clamour of eco-conscious tenants, buyers and businesses to buy an integral part of these efficient structures with lower running costs. Equally, however, the industry will need to move with all the times and make up with these changes while they come, to stay knowledgable and up-to-date using these increasingly common futuristic properties.

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