Features

Infrastructure Development & Real Estate

Neil Murray, Colliers’ Head of Strategic Advisory introduces the 2021 Infrastructure Expert Series.

Infrastructure development is a key contributor to economic growth by providing productivity efficiencies of commerce within an economy, in a region or country, and the rationale for investment, timing and appropriate scale is generally focused on transport and communication projects.

Transportation systems, strong telecommunications systems (including high-speed internet capability) and reliable appropriately-priced energy. Further, the supply and management of; water, water supply, water management, waste management and waste utilisation are considered fundamental to all real estate strategies.

The Australian Federal Government’s Infrastructure Priority List – a critical reference point for the most important infrastructure investments in Australia over the next 15 years – is weighted to Hard Infrastructure (highways, bridges, roads) and Critical Infrastructure (agriculture, telecommunication, energy) whilst State Governments, especially NSW, are making progress on Soft Infrastructure (health, law enforcement, education).

Australia is currently experiencing an almost unprecedented infrastructure boom. Recent research by Infrastructure Australia found that although the delivery of some projects has slowed due to service disruptions brought about by COVID-19, the infrastructure sector as a whole has adapted well to the “living with COVID” environment. Businesses have adjusted their infrastructure strategy accordingly through digitisation, decentralisation, localism, service innovation and repurposing.

It is crucial that real estate investors have an in-depth understanding of the positive and negative impacts on their development or on their investment brought on by the billions of dollars of infrastructure investment across multiple sectors nationally.

The impact of infrastructure projects can be complex. For example, whilst we associate infrastructure development with increases in property values there are certainly situations where infrastructure development results in the loss of property values. Property owners, investors and developers need to ensure that their assets are managed, positioned and developed to take advantage of infrastructure development and changing economic conditions.

Over the next few weeks Colliers’ experts will be exploring some of the complexities of infrastructure development using contemporary case studies in Australia. Our aim is to ensure all our readers benefit from reading our infrastructure experts case studies. Topics will include the Sydney Metro and the uplift in value for real estate, the importance of renewable energy in infrastructure development, the future of health infrastructure, and Sydney Western rail and the airport.

To read the full blog post on the Colliers website, click here.

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