“Driverless cars are already changing a lot & if you’ve been reading anything about this, it’s likely to happen faster than expected.”
Apparently, automotive and real estate industries are poles apart from each other, and it seems unlikely of their paths to cross anytime soon. However, as connected technology pervades almost every corner of our lives and industries across the board, it won’t be long before real estate feels the aftereffects of that which happens in the auto industry.
Being part of gated community living and industry activists, it’s important to understand the oncoming change well before they make an impact so as to neutralise possible risks. The details below reflect on something that might take place in the next 15 and 30 years. For some, it can be totally pointless, but for those already buying 30-year mortgages, then commitments are due within this transition period.
When cars commute for us, driving will change where people are settled
Imagine waking up early at five in the morning and crawling to your car, only to tell it where you wish to go, and the car would take you to the desired destination safe and sound while you complete your sleep. This isn’t any more science-fiction, but such technology exists and gears to advance further. Indeed, science is inevitable and extraordinary altogether!
The big question, how all of this affect real estate? Think about people who live in remote places, away from the urban setting, and it takes about two-to-three hours to get to work on time. How it affects home values within a metropolitan area where people can actually commute easily without actually living there and sacrificing quality of life in any way.
It’s possible that home values in a city might go down or further prompts developers to introduce larger price premiums for those who can afford a living.
Cars will become the next luxury, other than the rental real estate
It may sound absurd, but car ownership is going to be history where this fact isn’t a secret or strange in the automotive industry. Ford; one of the oldest car company in America has announced selling only trucks and SUVs, not cars. You’ll probably think that giving up the car sales would break the company but then what about organisations hosting shared rides such as Uber, Lyft and Uber. These are already developing a fully autonomous fleet of vehicles to replace personal cars as we speak.
For some, owning a car mightn’t be too expensive but there isn’t any zero return on the investment, so eventually, it’s only an expense. The time when there’d only be self-driving cars 24/7, the value of ownership is likely to tear through the roof. One of the most likely scenarios is of Uber selling unlimited-use passes which would provoke giving up ownership in trade. Today, it may sound farfetched and impossible, but people will happily give up vehicle ownership when cost savings become obvious.
A lot of people in the U.S. perhaps would buy their own homes; opt for gated community living while others would own an extra unit for rental purpose. The total volume of homeowners is comparably small since it requires capital, resources, expertise and risk reduction so on. That said, cars would become the new rental properties in the near future with people owning a car and an extra that can self-drive and generate income for you to make a healthy living and make both ends meet.
Why there’d be a need for a garage if you don’t even own a car in future? What value would it add to your Dubai property? One answer is storage where we can keep unsightly and rarely used objects or even turn it into a home gym.
Garages, therefore, would continue to thrive as a luxury home feature, fading from importance among the low and middle-end housing schemes. Huge and spacious garages won’t be needed in the next 20 years, and those having one attached to their unit will convert it into something that can generate income.