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Investment in space design will increase by up to 26.7% over the next year

The New Habitat

In recent years, space design has evolved significantly, driven by two essential pillars: health and sustainability. These concepts have become deeply integrated into design, underlining the importance of the physical environment in people’s well-being. This trend has led to a significant increase in investment in healthy and sustainable design, with forecasts that estimate growth of up to 26.7% in the coming year, accordin to the report The New Habitat 25/26.

The New Habitat: 25/26

Sustainability, in particular, has become a key factor in terms of competitiveness. Environmental awareness continues to gain relevance and this is reflected in the fact that clients are willing to increase their budgets by up to 25.5% in order to apply sustainable criteria in the design of their spaces.

The current global crisis challenges design to adapt to new realities: the rising cost of living, labour flexibility, the search for unique experiences and exclusive products. More and more people consider the spaces they inhabit as a refuge from adversity, leading them to seek places that offer a unique and satisfying experience.

These are some of the main conclusions of the fourth edition of the study ‘The New Habitat 25/26: how the spaces we inhabit are changing‘, presented today in Madrid by APE Grupo, a leading company in the ceramics sector. This study has been carried out in collaboration with the consultancy firm Futurea. As well as the participation of the General Council of Colleges of Decorators and Interior Designers of Spain, Bernadí and Fundació del Disseny de la Comunitat Valenciana.

The study

The study also includes the analysis of 22 international experts, as well as the participation of more than 400 professionals in interior design, architecture and space construction and design in Spain, in a survey of the sector carried out between February and March 2024.

José Miguel Pellicer, CEO of APE Grupo, has highlighted the importance of this study that “was created with the purpose of offering a value-added tool to professionals in the sector. We didn’t just want to follow trends, but rather anticipate them, contextualise them and, above all, fully understand them. Today, we are proud to present the results of the fourth edition of ‘The New Habitat’, a document that we believe has become an essential reference for our community”.

Homes: efficient use of space

The housing sector is undergoing a profound transformation, moving away from the traditional model focused on a single family type to a more flexible and inclusive approach. New trends such as co-living, co-housing, building cooperatives and modern student housing and nursing homes are redefining the real estate market. Experts predict a 52% growth in shared housing models over the next five years.

Design focused on well-being has become a key driver of this evolution. Investment in the design of residential spaces is expected to increase by 17% next year, with a particular emphasis on energy efficiency and climatic, acoustic and lighting comfort. Not only does this approach diversify housing options, but it also drives innovation in the sector.

However, the market is clearly oriented towards shared housing projects, which are expected to increase by 51.9% over the next five years. Furthermore, a 21% increase in the design budget is projected to improve the sustainability of homes.

Rising house prices in large cities have led to a reduction in the average size of housing units, boosting the use of micro-housing and shared communal areas to maximise the available space. Difficulties in achieving economic independence and an ageing population have resulted in an increasing number of multigenerational households. These factors are changing residential needs, making every square metre more valuable.

Concern for physical and mental health has also increased the demand for outdoor spaces such as balconies, terraces and gardens. It brings indoors and outdoors together and promoting a more integrated and harmonious living experience with the environment. In larger areas, this trend of integrating the indoors with the outdoors will continue to grow, giving rise to new spaces and innovative designs.

Hotels: a unique destination

The hotel industry is in the midst of a transformation, adapting to the demands of modern travellers through design. In a context of hybrid business models, hotels are redefining their offer for the coming years. Although trust in these models is set to decline from 87.5% in 2023 to 65.4% in 2024, investment in hospitality spaces will increase by 26.7% next year, underlining the importance of design in the guest experience.

For design and architecture professionals, 51.7% of a hotel’s revenue depends directly on the design of its spaces. This highlights the connection between the ambience created and customer satisfaction. Hotels are no longer perceived merely as places to stay, but as destinations in their own right, offering unique experiences based on exclusivity and indulgence.

The shift in the way we work and travel has led to a new demand for transformative experiences that foster cultural connection. According to a report by the Financial Times, 64% of luxury consumers prioritise memorable experiences over material goods. As a result, hotels are establishing synergies with brands from various sectors to offer shared experiences that benefit both hotels and their partners.

The experts involved in APE Grupo’s study have pointed out that the future challenge lies in generating a lasting and meaningful impact through these collaborations, turning hotels into centres for the discovery and purchase of products that perpetuate holiday memories.

Offices: neuroaesthetics and neuroarchitecture

The transformation of offices in recent years has redefined the concept of the workspace, adapting it to the needs of the present-day world of work. According to the report ‘The New Habitat 25/26’, shared office projects are expected to grow by more than 32% in the next five years. Furthermore, investment in workspace design will increase by 17.5% over the next financial year.

Traditional workspaces are merging with hospitality-inspired models, making interior design and architecture key factors. A good design can increase productivity by 61%. In this respect, 23% of the professionals who participated in the survey conducted by APE Grupo prioritise health (ergonomics, well-being, air quality, etc.), followed by 19% who focus on sustainability and energy efficiency.

New disciplines such as neuroaesthetics and neuroarchitecture are emerging with the aim of optimising human well-being and performance through space design.

The polywork trend, in which people combine several jobs to explore different areas, has boosted the popularity of co-working spaces. According to Harvard Business Review, 64% of employees find it more rewarding to work in shared spaces.

Globally, 79% of people feel disengaged from their work, according to a Gallup study. Strategies such as ‘workplace hospitality’ are designed to strengthen the connection between professional and personal relationships. A WTW study has revealed that 92% of companies have plans to improve the employee experience (EX) by 2024, compared to 52% who planned to do so by March 2020.

Retail: the search for experiences

In fact, shop design has evolved to create memorable experiences, reflecting a transformation in the retail industry that goes beyond simply selling products. Good space design can increase the success of a shop by 62.2%, and investment in space design is expected to grow by almost 25% in the next year.

The integration of new technologies allows for a smoother and easier shopping experience. While 80% of consumers are concerned about their privacy, 61% would be willing to sacrifice privacy for greater convenience, according to Norton. This balance between experience and privacy is crucial for the evolution of retail. As only 9% of consumers are satisfied with the in-store shopping experience, and only 14% with the online shopping experience, according to IBM. Furthermore, 65% of consumers use mobile applications while shopping.

Shops are no longer mere sales outlets; they are becoming guardians of the city’s artistic and architectural heritage, making this heritage accessible to the people. This focus on cultural heritage is complemented by the effort to make the customer’s relationship with e-commerce more personal and less transactional.

The experts involved in ‘The New Habitat 25/26’ affirm that the new technologies are transforming the online shopping offer through the creation of virtual flagships. It integrate with physical shops to offer a seamless and personalised shopping journey, starting virtually and finishing in the physical shop, or vice versa. This approach seeks to elevate the customer experience and redefine the role of shops in the modern retail world.

You can view the full The New Habitat 25/26 report here.