Real estate at a turning point

Listening to a #wef23 session entitled “Real estate at a turning point” this is what I learned:

Why is real estate important?
Nathalie Palladitcheff explained that everybody neeeds housing. And people spend, on average, 90% of their time in buildings.

What are some challenges in real estate?
Nathalie Palladitcheff: Real estate uses lots of carbon and lots of land.
Hussain Sajwani: Laws / regulations in Europe are very rigid. That holds investments back and thereby puts a limit on innovation / change.

What are examples of changes happening in the needs and behaviour of people?
Hussain Sajwani: In the USA, an increasing number of people move to Miami from the Northern parts of the country. And people move to Dubai and Abu Dhabi from Europe. Why? Because of the weather, and because people can work over the Internet. Also, buildings in Dubai and Abu Dhabi are being made with lots of communal spaces such as shopping centers, fitness centers, swimming pools, playgrounds and other things / spaces that help increase the quality of life.
Howard W. Lutnick: The importance of green buildings and focus on ESG are increasing.

What are some changes being created in real estate?
Christian Ulbrich: Green buildings are energy saving buildings – thereby saving costs. Also, digitization will become more important in real estate. Various kinds of data will be used to develop buildings.
Nathalie Palladitcheff: Earlier CDPQ focused on real estate investments in big cities. Increasingly, focus is on real estate investments outside of big cities. Affordable housing is being created because it is low risk. Also, there is much innovation going on in materials, technology and processes. That reduces costs, improves the environment and improves the quality of living.
Howard W. Lutnick: Office buildings are decreasing in importance, as people work via Internet from home and from other places. There is a need to transform office buildings into residential space. Replacement of windows will also reduce costs and improve the environment. Brand new high quality buildings with large windows are getting all the rent. Retail is becoming more experimental, for example with showrooms.

Asking ChatGPT what the most important trends in real estate are, this is the feedback I received:

1. Remote work:
   The COVID-19 pandemic has led to an increase in remote work, which has changed the way people think about where they want to live. This has led to an increase in demand for homes in more rural and suburban areas.
2. E-commerce:
   The growth of e-commerce has led to an increase in demand for industrial and warehouse space.
3. Sustainability:
   There is growing demand for energy-efficient and sustainable homes and buildings.
4. Smart home technology:
   The integration of smart home technology, such as voice assistants and smart thermostats, into homes and buildings is becoming increasingly popular.
5. Homeownership:
   As the economy recovers from the pandemic, homeownership is becoming more accessible for more people.
6. Investment:
   Real estate investment trusts (REITs) and other real estate investment vehicles are becoming increasingly popular as a way to invest in the real estate market.
7. Short-term rental:
   The popularity of short-term rental platforms such as Airbnb has led to an increase in demand for properties that can be used as vacation rentals.

What are ways to build resilience in supply chains?

In the #wef23 session Relaunching Trade, Growth and Investment I noticed that resilience in supply chains was among the conversation topics. For example, I heard Vice Chancellor of Germany, Mr. Robert Habeck, talk about problems related to dependency of few energy suppliers.

Asking ChatGPT how to build resilience in supply chains, this is the feedback I received:

1. Diversifying suppliers and sourcing from multiple locations to reduce reliance on a single supplier.
2. Building up inventory and safety stock to buffer against disruptions.
3. Establishing strong relationships with key suppliers and partners.
4. Implementing effective risk management and contingency planning strategies.
5. Investing in new technologies such as automation and digitalization to improve supply chain visibility and responsiveness.
6. Continuously monitoring and assessing supplier performance.
7. Leveraging logistics and transportation options to reduce dependency on a single mode of transportation.
8. Encouraging open communication and collaboration throughout the supply chain.
9. Regularly reviewing and testing the supply chain to identify and mitigate potential vulnerabilities.

Towards the end of the session, I heard Larry Fink argue for re-instilling hope in our minds. He elaborated on this by saying that if we have to reengage growth, we have to believe that tomorrow is a better place to be.

What are some big challenges that Denmark has?

At chat.openai.com I asked this question: What are some big challenges that Denmark has? This is the response I received:

“Like all countries, Denmark faces a range of challenges. Some of the major challenges that Denmark has faced in recent years include:

1. Climate change and environmental sustainability:
   Denmark has ambitious goals to become a carbon-neutral country by 2050, and it has made significant progress in increasing the use of renewable energy sources and reducing carbon emissions. However, the country still faces challenges in achieving its climate goals and in addressing other environmental issues such as air and water pollution.
2. Aging population and declining birth rate:
   Denmark’s population is aging, and the country has a relatively low fertility rate. This could have implications for the country’s social welfare system and for the sustainability of its economy in the long term.
3. Integration of immigrants and refugees:
   Denmark has a diverse population, with a large number of immigrants and refugees from various countries. Integrating these individuals into Danish society and ensuring that they have equal opportunities can be a challenge.
4. Housing affordability:
   Denmark has seen an increase in housing prices in recent years, which has made it difficult for some people, especially young people and low-income earners, to afford to buy a home.
5. Political polarization:
   Denmark, like many other countries, has seen an increase in political polarization in recent years. This can make it difficult for the government to achieve consensus on important issues and can create divisions within society.”

What are some big challenges that Switzerland has?

At chat.openai.com I asked this question: What are some big challenges that Switzerland has? This is the response I got:

“Switzerland is a small, landlocked country located in central Europe. It is known for its political neutrality, economic stability, and high standard of living. Despite its many strengths, Switzerland does face several challenges, some of which include:

1. Aging population:
   Switzerland has an aging population, with a high proportion of elderly citizens. This presents challenges in terms of healthcare, social security, and the labor market.
2. Immigration:
   Switzerland is a popular destination for immigrants, both from other European countries and from outside Europe. While immigration has brought many benefits to the country, it has also led to social and political tensions, particularly around issues of integration and cultural identity.
3. Environmental issues:
   Switzerland, like many other countries, is facing environmental challenges such as air pollution, water scarcity, and climate change. The country is working to reduce its carbon footprint and transition to renewable energy sources.
4. Income inequality:
   While Switzerland is a wealthy country overall, there are significant disparities in income and wealth between different regions and social groups. This has led to social tensions and calls for greater economic equality.
5. Political polarization:
   Switzerland has a system of direct democracy, which means that citizens can vote on a wide range of issues. This has led to an increase in political polarization and the rise of extremist parties on both the left and the right.”

Source

A conversation with a man who cuts and sells stones in Mahabalipuram in South India

The other day, I cycled through Mahabalipuram, a little town South of Chennai in India. The town is known for a group of UNESCO World Heritage monuments that date back about 1300 years and are carved out of rock. Particularly on weekends and on holidays, people from all over the world come to this place.

As I was cycling through a street in this town of historic character, an Indian man called out from his shop, “Hi where are you from?” Recognizing that he was interested in having a chat with me, I stopped and talked to him. This is what I learned from the conversation I had with the shop owner:

Answering his question about where I come from, I said that I was born in Denmark, and that since 2006, I have lived in Switzerland. He said that he had lived in Switzerland for 6 years. During this period, he worked for a company that cuts sculptures out of stones and sells them to various organizations.

Showing me some of the stones, he had hade, I noticed that he had organized his products well on the walls. I understood that this was one of the positive things he had learned while he was working in Switzerland.

Talking with him about some of the sculptures, which he had out from stones such as granite or marble, he showed me three small sculptures which he said were important for many Indians:

Saraswati, on the left, is the Goddess of learning and music. Ganesha, in the middle, is the elephant headed God, the God of success. Lakshmi, on the right, is the Goddess of money. Depending on challenges people are faced with in different situations in life, people workshop different Gods.

A conversation in Dubai with a young man from Bangladesh

One day, as I was doing some reading and writing in Dubai, I met 26-year old Hamad. He had come from Bangladesh to Dubai to do work in cleaning. Here are extracts of the conversation I had with him, i.e. my questions and his answers:

Question # 1: Why did you come to Dubai? His answer: I came to Dubai to work and to earn more money than I can earn in Bangladesh, where I come from.

Question # 2: How is your family situation? His answer: My mother is a house wife. My father worked for the government of Bangladesh. He is retired now. I have five brothers. Four of my brothers are married and moved out of our family home.

Question # 3: What is your goal? His answer: I want to go to Europe.

Question # 4: What are you good at? I am good at cleaning. Also, I know how to use Excel and other software.

Question # 5: Do you know your fellow countryman Muhammad Yunus, who help poor people escape from poverty by providing loans on terms suitable to them? His answer: Yes, I know Dr. Yunus. He did good work for Bangladesh.

Question # 6: Can you imagine starting your own cleaning company and doing cleaning work for both hotels, other companies, individuals and families? His answer: Yes. Thank you.

Question # 7. This question was asked by Hamad to me: What should I do when I run into walls and get knocked down by others? My answer: You should get up, try something else and never give up. Keep trying something until you find out what you like to do, what you have a talent for and what people appreciate and want you to do more of.

Question # 8: I saw this initiative [photo below] and really like it. What are your thoughts about this? His answer: I think it is a good initiative as well. What I understand is that the initiative was taken not least for this reason: When we wash towels, we use much water and chemicals. And when water, which is polluted, is consumed by people, people get sick. So when each of us takes responsibility by letting less towels get cleaned, we can make a difference for the world’s climate. A small difference by each of us can make a big difference for the world.

Hamad’s native language is Bengali. He also spoke Arabic and a little English. During some parts of our conversation, I used Google translate to better understand what he meant.

Listening to young people

Following what has been going on at the Drucker Forum, I noticed that care is taken to invite young people to participate in various ways, for example in writing essays. I find this initiative valuable.

Reading this interview with Gassan Al-Kibsi of McKinsey, I learned that 65% of the people, who live in the Middle East region, are under 30 years of age. And in this World Economic Forum video, I learned that we must listen to young people.

Reflecting on these sources, I decided to go out and listen to young people. In the coming postings, I will write about conversations I had with young people, for example about how they live their lives and about what goals they have.

Sonja und der Löwe im Zoo in Zürich

Eine Geschichte frei aus der Fantasie gedacht.

Sonja, ein 11-jähriges Mädchen aus Paris in Frankreich, beschloss sich im Sommer 2019 den Zoo in Zürich zu besuchen. Warum? Sie hatte auf Instagram gelesen, dass es im Zoo in Zürich seit wenigen Monaten ein Löwe lebt.  Sonja wollte diesen Löwe sehen.

In der Schule fragte sie ihre Freunde und Freundinnen, ob jemand mitkommen wollte. Und sie hatte Glück. Sebastian, ein Junge, der ein paar Jahre jünger als Sonja war, wollte gern dieses Erlebnis mit Sonja verwirklichen, denn der Löwe gehörte zu seinen Lieblingstieren.

Sonja und Sebastian nahmen mit der Mutter von Sonja am Morgen, den 12. Juli, den Zug nach Zürich. Sie fuhren früh los, denn sie wollten so viel Zeit wie möglich im Zoo verbringen. Während der Zugfahrt sprachen sie mit anderen Menschen und erzählten über ihre Initiative. Die Leute waren begeistert über was Sonja und Sebastian erzählten, und wie wünschten Sonja, Sebastian und der Mutter von Sonja einen guten Tag.

Als Sonja, Sebastian und die Mutter von Sonja beim Zoo in Zürich ankamen, gingen sie direkt zum Ort, wo der Löwe lebte. Viele Menschen waren da. Sonja und Sebastian hatten sofort Freude, als sie den Löwe sahen. Der Löwe sah so süss aus, fanden Sonja und Sebastian. Er spazierte herum zwischen den Bäumen und Pflanzen und fühlte sich, meinten die beiden Kinder, sehr wohl.

Später am Nachmittag sahen Sonja und Sebastian, dass der Löwe in einem See badete und verschiedene Früchte wie Mango und Banane ass. Der Löwe hatte viel Spass, als er Sonja und Sebastian sah. Er sprang mehrmals auf, lachte und bröllte. Sonja und Sebastian lachten auch und grüssten den Löwe mehrmals mit ihren Händen.

Kurz nach 17 Uhr nahmen Sonja, Sebastian und die Mutter von Sonja den Zug zurück nach Paris. Im Zug nach Paris gab es kostenloses WLAN, und so konnten Sonja und Sebastian während der Reise auf Instagram alle ihre Fotos mit ihren Freunden und Freundinnen teilen. Noch nie hatten sie innerhalb von so kurzer Zeit so viele Likes und Kommentare auf ihre Postings erhalten. Der Tag war wirklich ein Erfolg.

Walk on the longest suspension bridge in the world near Randa in Switzerland

Testing environmentally friendly products and services

Visiting the Umweltarena in Spreitenbach just outside Zürich, I learned a lot testing various products and services. Top experiences: Testing a segway and a Renault Zoe. The home made cream soup in the climate restaurant tasted very well. The saying on the last slide “Zwischen Reden und Tun liegt das Meer” means “Between talking and doing is the sea.”