European real estate is transforming. Traditionally, where jobs were, people used to follow. Now, workforce trends like remote work are shaping the map of real estate in Europe into something else.

Many in the real estate sector are familiar with geospatial tools—like POIs and footfall—but not everyone has leveraged their potential. Geospatial data can provide valuable information for European real estate developers navigating a landscape influenced by new labor market trends. Location-driven insights can help make better decisions about site selection, value assessment, and investment locations. 

The labor market has impacted the real estate market

Job and employment patterns are key influencers of the property market. Currently, across many European industries, trends such as worker shortages, skill gaps, and recruitment difficulties are impacting the real estate market. 

Eurostat data reports that nearly 75% of manufacturing and service businesses are struggling to find skilled workers as the EU’s unemployment rate hit a historic low of 5.9% in September 2024. 

Population growth has been the driver behind an expanding labor force, but with aging workers heading to retirement, the active workforce has shrunk. Labor shortages in sectors like construction are delaying projects and hindering progress in real estate development. This limit on property development impacts the cost of living as demand for housing grows in city centers. This has increased rental prices and puts stress on affordability issues in the residential sector.

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The remote work movement

Workers' priorities have shifted per generation and culture. Lifestyle and neighborhood preference has gained significant value for the working population who want fully remote jobs or contract work over full-time roles in a city center. That’s been seen in an increased demand for homes with office spaces, for instance. 

The five-day-a-week office culture has fallen out of the commonplace. But, another reason for this market shift is the rising prices of housing in major cities and increasing competition for space. People are willing to move out of city centers not only because they want to work more from home, but also because its affordable.

As a result, retail properties have experienced declining footfalls in traditional residential areas, forcing them to invest in visitor attractions or relocate to growing neighborhoods. For example, in Leeds, The Core shopping center is slated for demolition due to declining occupancy and footfall, making way for new developments.

The hybrid era

The fully remote scenario doesn’t apply to all situations. The hybrid work arrangement is more commonplace and impacting office real estate. McKenzie reported in 2022 that office attendance was 30% lower than it was pre-pandemic. With more workers living further from city business centers and opting for flexible work arrangements, businesses are struggling to find the ideal workspace. 

While some employers encourage a full return to the office for collaboration, cohesion, and talent retention, office spaces are either overcrowded or underutilized. In most of Europe, the average occupancy level of offices is 60%. For those counting the costs and paying the office bills, this has caused quiet the headaches.

But how to navigate these circumstances? While the adaptation to changes in the labour market can’t happen overnight, it is the power of data that can steer decision-making in the right direction.

How geospatial insights help real estate developers

Assessing the value of property

An accurate assessment of a property's value goes beyond its physical attributes. Even if the building offers enough space for the home office everyone desires, geographical context is necessary. Geospatial data can offer insights into elements such as neighborhood amenities. 

Using POI data, real estate companies can determine a property's value based on its proximity to amenities such as schools, hospitals, shopping areas, transit hubs, and offices. For commercial properties, nearby competitors or complementary businesses (restaurants, gyms, and banks) also impact the value of a location. For office locations in particular, amenities nearby can influence employees' motivation to work there. 

Typically, the greater the number of amenities, the higher the value of the property is. Real estate experts can offer clients detailed insights into these neighborhood features, providing transparent aid for a more accurate property assessment. 

Footfall data will show movement patterns of people in an area, indicating the appeal and commercial viability of a site. High footfall might command higher retail rents, while low footfall might imply underperformance or redevelopment potential. All in all, footfall insights allow developers to assess the vibrancy and potential of a location, informing more precise property valuation. 

Making investment decisions

POIs and foot traffic insights are powerful geospatial tools for real estate investors wanting to make forward-looking decisions. 

When evaluating a location for potential investment, POI data can uncover opportunities and risks. Investors can assess the density and type of businesses in a given area to understand market saturation and potential underserved spaces. For example, if a neighborhood has a growing residential population but lacks amenities like a grocery store or gym, that gap signals a potential investment opportunity. 

That said, POI data is most effective when layered with mobility data like footfall. For retail investors, understanding pedestrian traffic volume can help determine which locations are worth going after. It gives them the ability to identify movement patterns over time and see which areas are receiving high foot traffic. For example, neighborhoods that have seen an uptick in inbound movement due to hybrid work flexibility or affordable housing may become the next hot spot. See it as an early signal that helps investors act ahead of the curve, whether that’s for targeting residential build-to-rent opportunities or flexible office spaces. 

When layered together, POI data and footfall insights create a clear picture of a location’s potential. Highlighting current value while giving insight into how it’s likely to evolve. That’s the key to smart, resilient investment in a changing real estate landscape.

Site selection with Echo Analytics

In real estate, site selection is the process of analyzing multiple options about a site and evaluating its respective pros and cons. It's one of the most important decisions made in the business. To bolster the site selection process, Echo provides insight-ready datasets for POIs and footfall so that real estate experts can make confident, informed decisions about a location. 

Echo’s datasets allow you to:

• Select lucrative sites with footfall data. Analyze foot traffic, demographics, and competitor presence to evaluate the potential of a site.
• Eliminate site selection guesswork: Uncover where your target audience is most likely to be, their interests, and their brand preferences with mobility data. 
• Gain a competitive edge: Utilize detailed POI data to pinpoint the exact locations of your competitors. Have a complete understanding of the retail landscape and insight into the type of stores in a given area.

Conclusion

From skilled labor shortages and an aging workforce to the rise of hybrid work and the exponential cost of city living, labor market shifts are reshaping the European real estate market. Observing these changes is one thing, but adapting to them requires data and insight. 

Geospatial data and insights give European real estate professionals the means to navigate the complex shifts with confidence. Whether you're selecting a new development site, assessing a property's true value, or identifying high-potential investment zones, location intelligence turns uncertainty into opportunity. Now more than ever.

The secret of staying ahead is getting started. Labor trends will continue to evolve, even shift from where they are now. With geospatial intelligence, you can react and adapt to it. 

Start using geospatial data and insights and future-proof your strategies today.