The future of real estate

What will our cities look like in the future? How will we keep up with all the rapid changes to how we live, work, invest and spend our free time? How will the built environment need to change to prepare for the different future scenarios that may lie ahead?

These are the broad questions being explored in the new JLL Future Vision program, an ambitious research initiative incorporating the perspectives of experts from a wide range of disciplines, from demography to anthropology and urban planning.

JLL Future Vision combines:
 

• JLL’s robust, long-term exploration of megatrends: Our network of 500 researchers across the globe have sought to uncover what will matter most to the real estate industry in the coming years.

  
  

• Thought-provoking input from a multi-disciplinary forum of future thinkers: We identify the meaningful signals that will shape our societies and the built environment.

  
  

JLL’s researchers have explored over 80 scenarios that could impact our societies and economies in myriad ways. And it’s become clear there are four urgent priorities for commercial real estate: climate, people, technology and resilience.

“While no one knows what the future holds, we believe that exploring possible future scenarios enables the entire real estate value chain to prepare as much as possible for the unpredictable – and all the associated opportunities and risks, whatever they may be,” says Ben Breslau, JLL’s Chief Research Officer, who is leading the initiative.

The insights from the program are intended to help firms embrace the unknown and provide a roadmap for navigating ongoing change and disruption. Importantly, these actions can, and should, be taken today – from the ways we design, build and operate real estate, to how people and businesses interact with the built environment. 

This article gives a snapshot of what JLL Future Vision has discovered so far. We’ll be sharing deeper insights in a series of further articles, starting with The Climate Inflection Point and Get set for the 5th Industrial Revolution.

Rather than attempting to predict the future, JLL Future Vision focuses on a scenario-based approach that enables planning for multiple futures.

Occupiers and investors are preparing for what may come. But what exactly are these possible eventualities?

“Our purpose has not been to forecast what will happen, which can be a fruitless – indeed misleading – activity,” says Steven Lewis, JLL Global Head of Insight. “The focus instead is on a structured, scenario-based approach that enables planning for multiple futures by identifying what real estate companies must do now to capitalize on all eventualities and start pivoting as the future takes shape.”

Read on for a sample of what we discovered in relation to the four imperatives, and the questions business leaders need to be considering.

Imagine a world where the implementation of AI, quantum computing, and robotics accelerates, enhancing efficiencies and empowering people to tackle previously insurmountable societal and scientific challenges. Real estate can expect to experience the impacts as both space provider and user of technology.

In this world, the built environment is set to become part of an interconnected ecosystem. But not everything will necessarily become digital. To the contrary, real-life experiences will become more important to people, with physical spaces taking on new meaning as they blend with technology, ranging from subtle step changes to fully-immersive realities.

The way the real estate industry operates will also change. Buildings and spaces will be constructed through advanced automation, with robotics and intelligent materials combining with new advanced 3D printing and modular construction capabilities. Digital twins will be embedded naturally in building processes, monitoring every aspect of a building’s life cycle, from design to demolition. Flexible spaces will be able to dynamically respond to any number of current needs.

Key questions for investors/occupiers

• How will technological advancement impact the markets that companies operate in this new landscape?
• What will new business models look like for developing, designing, operating, managing, leasing and investing in real estate? 
• How will physical space need to change to make the best of new real estate technology and support people’s needs? 
• How will we adapt to the high-capacity infrastructure requirements of the AI sector? What could be the impact on physical space, design, location strategies and property values? 

In the months ahead, we will explore these imperatives and other themes in a series of articles and podcasts. We are starting with deep dives on the climate and technology imperatives – see The Climate Inflection Point and Get set for the 5th Industrial Revolution. An examination of the impact of the future of work on real estate will follow, along with ongoing analysis of the impact of macroeconomic trends on the real estate industry.

In addition to publishing regular articles, JLL Future Vision will provide insights to clients through one-to-one conversations and future workshops. 

Explore more of JLL's latest insights on World Economic Forum themes at our dedicated Davos page.