Topic 5 : real estate industry

Topic 5 : real estate industry

               Nowadays, real estate industry has faced a change. This is because the price of real estate is increasing slowly and the needs of the public to real estate changed after covid 19. The requirement of the purchasers changed from a place to live to a place to live in a good environment. Furthermore, the sectors like data center and industrial logistics are highly sought-after by investors. Meanwhile the office sector faces severe challenges due to the decreasing demand.

 

A graph showing a house price AI-generated content may be incorrect.

Figure 1 : House price increase

               In future, I think that the real estate market will become affordable for everyone. Besides that, future real estate and regional planning will be restricted around the new fundamentals which are energy, computing power and living style. The developers and government will be planning and integrated in these to get in advance to become more competitive in the AGI era.

Figure 2 : affordable housing

 

First and foremost, the multi-functional community is an evaluation of the 15-minute City concept in the AGI era. As AGI is going to take over most of the procedural and analytical work. At the same time, human labour will shift to focus more on creativity, interpersonal communication and physical manipulation. Workplaces within the community will no longer be traditional office buildings but will primarily consist of design studios, protype workshops, remote collaboration centers and high-end service industry. For example, a single building can integrate automated warehouses, 3D printing workshops, retail display stores, R&D offices and residential spaces. The logistics are entirely handled by robots and drones operating within the pipes. Based on the new model, the asset value of real estate will shift from geographic location to connection density and service quality.

A diagram of a community AI-generated content may be incorrect.

Figure 3 : 15 min city

 

The second solution is to create data centre zone of the AGI era will evolve from isolated IT facilities into strategic infrastructure will be tightly bound to energy and real estate. This transition from cloud computing to intelligent computing centres required unpredicted demand from computing power for the AGI to do training and large scale of GPU or chips clusters for the artificial intelligent computing centre. The preference for the address of the site selection must be energy-oriented as they prioritize cooling costs and low-latency of the network.

Figure 4 : data center

 

The third solution is to create a huge power grid region. This is because the fundamental of AGI and comprehensive electrification. They will lead to an explosion in electricity demand. For example, the data centers must operate 24/7. Any of the power fluctuation cold interrupt model training worth hundreds of millions. Therefore, the core focus for grid region will be high redundancy and intelligence to form the multi circuit power supplies and self-healing smart grid.

Figure 5 : power grid region

 

The raise of AGI will lead to transforming the traditional real estate industry. The core of value of the real estate will from the geographical location change to fundamental infrastructure. It will be redefine prioritise of the sectors of the building area and create entirely new asset such as power asset and digital assets. For example, the power assets which is centered on smart grid and energy storage facilities. The digital assets is the network access and hosted by data center.

Figure 6 : AGI and real estate

 

Reference list

1)       Figure 1 : house price increase

StatistaCharts, 30 May 2025 , [Photograph of a cart][Photograph], https://www.voronoiapp.com/real-estate/House-Prices-Outpaced-Income-Growth-Over-the-Past-40-Years-5248

2)       Figure 2 : affordable housing

Portland Press Hearald, 10 Aug 2021, [Photograph of the affordable housing] [Photograph], https://www.avestahousing.org/2021/08/commission-begins-study-of-barriers-to-affordable-housing-in-maine-communities/

3)       Figure 3 : 15 min city

Buro Happold, 7 Jun 23, [Photograph of a city] [Photograph], https://www.burohappold.com/articles/15-minute-cities/

4)       Figure 4 : data center

Nidhi Singal, 3 Jul 2025, [Photograph of data center][Photograph], https://www.networkworld.com/article/4016757/oracle-to-power-openais-agi-ambitions-with-4-5gw-expansion.html

5)       Figure 5 : power grid region

ENIC, 2021, [Photograph of a power grid region][Photograph], https://criepi.denken.or.jp/en/enic/researcher/RegionalGrid.html

6)       Figure 6 : AGI and real estate

Akan T Rajah, 24 Sep 2024, [Photograph of AGI and real estate] [Photograph],

https://www.linkedin.com/pulse/agi-future-real-estate-proptech-akan-t-rajah-govvc/

                                                                                                                                                                            

 

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