2022: Impact of 5G on Real Estate

Note: This is an extract from the paper published by Deloitte. A link to the complete article can be found below this post.

For the last several years, 4G – which was revolutionary at its introduction around 2010 – has served our society well. However, our demand for accurate and fast data is growing exponentially, and inherent limitations relating to speed, latency, reliability, and capacity are becoming more and more apparent. 5G mobile internet is a significant leap forward from 4G. If its full potential is realized, it will not only address 4G’s limitations but will transform the way we live, work, travel and play.

5G operates over much higher radio frequencies than 4G, which requires a substantial upgrade and cell towers. Higher frequencies require the closer proximity of cells, meaning that ”small cell sites” will need to be added to buildings, light poles and other structures across the country. Network providers are building this high-speed infrastructure at a pace, though, to date, the initial commercial application for the 5G rollout has centred upon mobile broadband.

5G as an enabler for workplace transformation

As pre-existing working patterns shift, 5G could further consolidate the workplace transformation. Fully integrated 5G offices could create enhanced revenue opportunities for landlords through different leasing models. Business models of flexible office operators, booking desks and meeting rooms with specific digital capability may become more common as 5G networks expand.

Key observations

The previous year may have slowed down the 5G technology revolution. Still, it has also further highlighted the need for improved connectivity, more incredible network speeds, reduced latency and wider bandwidth capacity to support digital transformation. Although there are challenges in implementing 5G and no doubt greater speeds will soon exceed it, the economic and social benefits will outweigh the costs. The real estate sector has the ”bandwidth” to reap some of the greatest benefits from its implementation.

More information

Link to the full article can be found below:

https://www2.deloitte.com/nl/nl/pages/real-estate/articles/real-estate-5g-predictions.html