Real Estate and Architecture – A Necessary Relationship?

It’s interesting to know that real estate investors and architects rarely see each other face to face, despite each is dependent on the other’s work. On one hand, we have the person designing the building, working with engineers and other specialists in order to get the work done, and on the other hand, the person in charge of buying it. “Architects create the dream and the real estate investors buy it”. An analysis of the inter-dependence of these two fields is required, so each side will get the credit for the work done.

Two stubborn sides

We must acknowledge that generally speaking, architects are pretentious, status-quo disruptors and sometimes ego-maniacal. Real estate investors are known for speaking ill towards architects at company cocktail parties or other events, claiming that architects are not able to understand words like schedule or budget. A healthy relationship between both parties would bring plenty of gains since each of them can contribute in a unique way for how the real estate industry develops.

How each side creates value?

Architects are great people when it comes to making things, thinking weird and dreaming big. When it comes to the quality of design and the cultivation of unique human experience, they are the champions, but the financial part plays an important role in order to get things done and that’s where real estate investors step in.

With financial experience as well as the ability to understand how economic factors can influence the future development of an area from a real estate point of view, real estate investors are the ones who need to anticipate correctly whether an investment will produce returns in the long run. The tension between both sides looks to be a necessary thing because it acts as a motivation to do each work as better as it can be possible.

The intersection between both fields

Despite their innate conflict, architects and real estate investors share a few things in common. It’s true that we talk about two separate industries, but both sides need to have knowledge about building features and history. Architects carry a broad range of skills, including a strong visual awareness and a strong understanding of various building materials and structures.

However, the attention to details when it comes to old and new buildings is a requirement for both professionals. Do you think that real estate investors like Steven Roth, Ofir Eyal Bar, or Joseph Sitt will be able to find so many new opportunities where others don’t, without a strong set of skills?

Architects on the path of real estate investing?

Another interesting thing happens when an architect takes the path of real estate investing. They have the training needed to inspect and evaluate properties in order to find the most valuable opportunities. Their experience with aesthetic judgments helps them to offer pieces of advice on matters of building proposals. In addition, the increased focus on sustainable real estate makes architects the right fit, given their knowledge of energy conservation or recyclable, eco-friendly materials.

Architects are able to manage the paperwork involved in each real estate transaction, saving a lot of time and money. In comparison, real estate investors without training in building techniques usually ask for the help of a qualified professional. Working with clients and finding new real estate opportunities becomes an easier task with a background in both real estate and architecture.

Design = a difference-maker in real estate?

It’s indisputable that architects play a major role in contributing to the commercial success of the investors. Architectural design is able to provide a cultural capital hardly quantifiable with money and serves as a dowel action. The scale of real estate development projects increased in the past decade, due to the advancements in emerging economies, and that had complicated the work of architects in terms of technical and administrative aspects.

They analyze and make a synthesis of all the investors’ needs and then come with a project that satisfies spatial solutions, the balance of income/expenses, conformity to legal requirements, sustainability, and conformity to the public demands, among other aspects. Nowadays, one of the hardest picks for a real estate development project is the architect, since he can determine the commercial failure or success of the final result.


To summarize, between architecture and real estate investing we can easily find many links, with each field having a decisive contribution to the success of any given project. The set of skills required to master both jobs is extremely valuable, as a result. Despite arguments between architects and real estate investors, only together they are able to put everything into place. Design is a key element in today’s cultural mix and the creativity of the architect combined with the market knowledge of the real estate investor can deliver the expected results.


Tags: architecture, home, real estate

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