Strategic trends in the real estate market you need to know about

From climate risk and AI to regulation and behavioral bias, yesterday’s assumptions about real estate no longer hold.

Real estate markets are undergoing structural shifts. Climate risk is increasingly already priced in, regulation is reshaping returns, and digital job density is redefining what makes a location valuable. IESE’s Carles Vergara, who hosted the annual conference of the American Real Estate and Urban Economics Association (AREUEA) at IESE, has a checklist. Drawn from new academic research in real estate and urban economics, these takeaways are vital for leaders aiming to build competitive advantage in real estate now, including climate data, AI, diversified financing and behavioral insights.

SOURCE: The American Real Estate and Urban Economics Association (AREUEA) Annual International Conference, hosted by the Department of Financial Management at IESE Business School in 2025.

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