Asian real estate booming on tech and sustainability trends

Speaking at the PropertyGuru Asia Real Estate Summit in Bangkok, he said, “We power communities to live, work, and thrive in tomorrow's cities. This year’s summit convened leading experts and stakeholders from across Asia and beyond to address the challenges and opportunities impacting our urban environments. This exchange of ideas reaffirmed that thoughtfully planned, environmentally conscious spaces are crucial to sustaining cities as they accommodate the next generations of property seekers and enterprises.”

Citing global management consulting firm McKinsey, Krishnan said the Asia property market is expected to generate over 50% of global gross domestic product (GDP) and be responsible for almost 40% of global consumption by 2040.

Krishnan expects massive growth of the Asian property market to attract significant investment to the region, with investment management firm Colliers expecting 69% of Asia-Pacific investors to allocate more than 30% of their assets to real estate in the next five years.

He has also witnessed digital technology’s pivotal role in coping with challenges in the property industry, saying that adoption of artificial intelligence (AI) resulted in more efficient processes, new business models and new ways to engage with consumers.

“We are still in the very early stages of the evolution of generative AI and we, PropertyGuru, fully believe that it will transform our industry at all levels,” he said.

However, Krishnan noted that the next phase of property industry growth depends on city planning, policies to meet consumers’ demand and access to property-related data.

The ageing population poses opportunities and challenges in the property industry as it boosts the need for modern, good-quality housing that is both affordable and designed for an older population, he explained.

He said rapid urbanisation has triggered uncertainty over sustainability in property development as the industry contributes an estimated 42% of global carbon emissions.

This uncertainty has impacted confidence among consumers as to whether property developers are addressing climate change, he said.

Krishnan advised property developers to focus on consumers’ trust, data-driven decision making and transparency to meet their demands.

“Technology can play a role in driving vibrant, environmentally sustainable communities within the cities that we are building,” he added.

Factors for liveable cities

Factors that make cities in Asia-Pacific and the Middle East liveable are political stability, healthcare, infrastructure and cost of living, explained Sumana Rajarethnam, The Economist Intelligence Corporate Network’s director for Southeast Asia.

The Covid-19 pandemic has boosted demand for healthcare among people who live in cities, he said, adding that people are also concerned about infrastructure against climate risks like air pollution.

Rajarethnam noted that the cost of living has risen by an average of 8% between 2023 and 2024, the fastest rate of increase in 20 years.

“Asia is a region of extreme differences in living style where you can see the ultra-wealthy and low-income earners living very close to each other,” he said, adding that relevant agencies should address quality of life amid inflation.

Thai pop superstar, actor and creator Pichaya “Golf” Nitipaisalkul brought a personal touch to the summit with a keynote speech that resonated with the universal aspirations of city dwellers, sharing his journey to finding his dream home.

Celebrating its 10th year, the Asia Real Estate Summit is held annually during PropertyGuru Week, alongside the PropertyGuru Asia Property Awards Grand Final.

Over the years, the summit has championed proptech, innovation, green building, climate action and sustainability. It promotes collaborations and showcases the latest technologies, practices and emerging talents that are driving the real estate sector forward to build a better, stronger future.