Hopes and fears for the future

COMMENT It would be an exaggeration to say the world’s eyes are trained on Davos this week. Many are: some with interest, others with contempt. But make no mistake, the issues being discussed by political and business leaders at the World Economic Forum are those that will directly impact on real estate in the decades ahead. Tech is among them, of course. Data, artificial intelligence and 5G especially. The importance of the workplace in attracting and retaining talent is up there too. And yes, of course the headline, frighteningly near-term issue of Brexit is dominating so many conversations. With Dyson’s HQ move to Singapore announced this week, and Sony’s to Amsterdam, London’s years as the logical European HQ for any global business may well be over. No wonder so many European politicians were seen courting chief executives in the town’s halls and hotels, advancing the case for their capitals. Guy Grainger, EMEA chief executive of JLL, tells this week’s Future of Real Estate podcast (what do you mean you haven’t listened to it yet? Do so without delay at www.egi.co.uk/news or via your podcast platform of choice. Search for EG Property Podcasts) of his conversations in Davos this week: of the UK chief executive who told him that Brexit would ultimately lead to his bank doing less business in the UK; of the warnings that while multinational manufacturers like Jaguar Land Rover may be able to insulate themselves against disruption by adjusting business models, it is their supply chains that will struggle far more. More encouraging was the emphasis put on the environment and the role real estate has to play in delivering on global targets for carbon reduction. The United Nations estimates real estate accounts for about 40% of the world’s energy consumption and a third of all carbon emissions. “We’re part of a very big problem,” Grainger says on the podcast. “There is a real call to action here in terms of the time running out on our climate problem. We’ve got 12 years to reduce our carbon emissions by 50%.” Doing so will require targeted investment in research and development, collaboration and a very different mindset throughout the built environment sector. Has real estate done enough to reduce emissions to date? No, says Grainger, who advocates greater regulation. “It won’t happen until clear boundaries are set,” he says. But there are exemplars, with Holland and Sweden leading the way. But it’s not too late. His message to government and UK plc? See it as an opportunity rather than a threat; and an area where the UK can still lead, whatever the challenges of the months ahead. Speaking of the future of real estate, the 2019 EG Awards are open for entries. We see them as the Future of Real Estate Awards, focused wholly on celebrating the individuals and businesses at the forefront of innovation. This year more than ever, wider contribution to clients and other stakeholders, sustainable growth and positive change are just as important as past financial performance and deal-making. So are you changing the property industry and the built environment for the better? Are you and your business looking forwards, not backwards? And are you ready to celebrate with no black tie in sight? Then enter the 2019 EG Awards now at www.egi.co.uk/egawards19 To send feedback, e-mail damian.wild@egi.co.uk or tweet @DamianWild or @estatesgazette