self-driving cars will change the property market
Google is already testing out
So when will these cars become the absolute and only means of transport? By 2023, according to Morgan Stanley; by 2025, according to John Zimmer (the founder of Lyft); or 2040, according to conservatives like McKinsey. However, Menlo
Our forecast is as follows:
New-build residential property will become cheaper
KPMG experts have calculated that the cost of owning a $21,000 car (completing an average mileage of slightly over 15,000) will increase to $40,000 within five years. Such a price seems high when taking into account that the average car sits unused for around 22 hours of each day.
On the one hand, this will lead
Whilst, on the other hand, homes without garages will be cheaper to construct. According to CBRE, parking spaces in Washington, DC increase the cost of residential properties by an average of 25%. As such, without the need for parking spaces, we will see a decrease in the purchase and rental prices for real estate.
Detached houses on the outskirts of town with insufficient infrastructure will become less liquid
By autonomous vehicles we mean
Studies show that the demand for
Flats in central locations will remain popular, as they are situated within walking distance of offices, shopping centres and restaurants. The same will be said for properties located on the outskirts of town that have
for short-term rentals and hotels will decrease
According to a study by Michael Sivak and Brandon Schoettle from the University of Michigan, young people will travel more often. This is firstly because people without driving licenses, the number of which has been growing significantly over the last 30 years, will be able to own and use their own vehicle and, secondly, because travelling will become cheaper thanks to the opportunity to work whilst on the move.
Sven Schuwirth, a senior strategist at Audi, predicted that
Andrew M. Ryan, author and blogger, calculated that a tourist would have to rent around 30 hotel rooms and pay around 60 restaurant bills to visit 48 American states.
Demand for retail property will fall; demand for warehouses will rise
Transportation, management, salesperson salaries and retail property rental costs make
This will present a serious challenge to retail property within
Warehouses will be built even further from the centre
In the US, just as in other Western countries, drivers are prohibited from driving their vehicles for more then 11 hours in a row, which limits drivers to covering
Driverless trucks will be able to ride day and night. This will not only allow businesses to deliver more products, but also allow them to reduce expenses: retailers and producers will be able to choose facilities on the far outskirts of city centres with cheaper rental prices.
Parking spaces in business districts will be relocated to the periphery
According to Old Urbanist, 65%
With the arrival of driverless cars, there will be no need to park nearby
As a result, the most liquid of properties will be those where there are car parks that are located on the outskirts of town or near major transport junctions.
New technologies should be set to make many property types assailable. We recommend investing in peripheral warehouses and residential real estate in central districts: such properties will secure real benefits over parking and street retail in as little
George Kachmazov and Yulia Kozhevnikova, Tranio.com