Real estate firm JLL reveals that Asia is primed to relish in the upcoming industrial revolution.
The fourth industrial revolution is well under way. With emerging technological breakthroughs and extreme automation through the connectedness of billions of people, the world is set to turn the page to a new chapter – with Asia leading the way.
An anticipated annual economic growth rate of 5 percent in Southeast Asia is forecasted to last until 2020, which exceeds the global growth rate by 1.5 percent. By 2020, the middle income population is also expected to grow from 70 million to a whopping 194 million, JLL reports.
The data shows how the ASEAN Economic Community (AEC) can embrace the changes of technology and renovate how people work, live and play by evolving and diversifying real estate solutions. Particularly with Southeast Asia’s urban cities growing by 2.2 percent annually, a large demand for office space is predicted, predominantly in Manila and Kuala Lumpur.
Traditional office buildings will morph into flexible co-working spaces and make up 15 percent of the office stock in Southeast Asia by 2030. The same concept spills over into accommodation, as home-sharing is also on the rise. The efficiency in property use through platforms such as Airbnb will impact traditional lodging such as hotels. And, despite the spike in online mobile shopping, JLL suggests that consumers will still desire testing products in brick and mortar shopping centres.
“…. In many ways, new technologies will allow people to bypass current constraints and leapfrog into greater efficiency. The impact on real estate and infrastructure in Southeast Asia is likely to be positive and transformational. If harnessed effectively, the changes will bring improved productivity, income levels and quality of life to the population,” states Chris Fossick, Managing Director, Singapore & South East Asia, JLL.