One of the areas that will see enormous change over the next decade is real estate. It is going to see a shift like we never saw before.

This article is not going to delve into housing bubbles, markets, or anything like that. Instead, we are going to look at the long-term implication that will affect the real estate market.

Essentially, we are going to see the globalization of real estate.

It is a shift that will be brought on, not surprisingly, by technology. The advancements being made in this area are really going to have a major impact upon this market. We already saw part of the process. However, as was laid out in The Layout For The Globalization Of Real Estate, this is only the fist phase.

To briefly recap, the three phases are:

• Moves within a certain geographic area due to more people being able to work from home. For example, one might move three hours away from the office is attendance is only required once a month.

• Migration within an individual country (mid 2020s and on) as the remote work idea truly takes hold.

• Movement throughout the world as people move to lower cost countries (2030s).

Digital Nomads

We are seeing innovation advancing at a pace whereby we could see many become digital nomads. This is the concept that people can live anywhere because their work is done digitally. It is one of the main pieces of the remote work movement we are seeing.

If one spends his or her day looking as a screen that is tied to the cloud, this can basically be done from anywhere. Over the next 5 years, many knowledge workers will find themselves in this realm. They will not be tied to an office.

Of course, this is extending beyond the worker-employee relationship.

One area that could radically advance it is cryptocurrency. Through the monetization process of content creation, infrastructure provider, or gamer, we can see many alternatives opening up. As they generate income via rewards or crypto payouts, the need to be in an office diminishes.

Digital nomads understand the transition that is taking place. They realize that, through cryptocurrency, perhaps both sides of the income statement can be altered. Obviously, the increase in payouts means the income side of the equation increases. However, one can reduce expenses by looking to those areas that are less costly.

While they are rare now, it is likely we see these people gain in number. Over the next decade, more than a billion people could be earning some part of their income from cryptocurrency related activities. If that is the case, digital nomad membership will increase dramatically.

Globalization Of Real Estate

When will countries grasp onto this concept? And how will all this look?

So far, national governments has a monopoly on the population. Our present governance system is based upon geography. Where you were born is the main criteria.

That is going to change as people have options. When one is not tied to an area financially, the ability to relocate becomes even more attractive. Here is where governments might have to start thinking about competing for people.

We can expect this to start with the lesser developed (read cheaper) countries. They are in the driver's seat since they have the financial advantage. If their cost of living is drastically lower than developed counterparts, then the ability to attract outsiders is increased.

Of course, a quality "product" needs to be delivered. For this reason, there will have to be investments in infrastructure, hospitals, and a host of other things that people from developed nations come to expect. However, if the investment is made, hundreds of thousands could be attracted.

This will obviously play havoc with real estate pricing. Some of the over-inflated areas that have a great attraction at the moment could find less demand in the future. In a country like the United States, this could mean that iconic cities like New York and Chicago might be struggling a decade from now.

At the same time, underdeveloped areas could see higher demand as people move around seeking lower cost alternatives.

Ultimately, we will have a situation similar to the globalization of manufacturing. There the lowest cost of labor was sought. With the globalization of real estate, the lowest cost of living will be sought out, as long as some minimal requirement are met (a non-warzone is a good start).

All of this is going to have a tremendous impact on the global real estate market. By the mid 2030s, we will see many people living as digital nomads. Their allegiance to any one area will wave over time.

This is going to have enormous impacts upon the real estate market especially if we see hundreds of millions of people in this position.

Also check out:

• The Globalization Of Real Estate Is Happening

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