Just as the development of motor transport and e-commerce dramatically changed demand for preferred locations, asset types, investment strategies and design, so will technology advances such as artificial intelligence (AI), generative AI and robotics. 

Through 2030 and beyond, the human-machine interactions of the 5th Industrial Revolution will alter how and where we work, live, play and invest with profound implications for real estate owners and occupiers. It means we must all now consider what success looks like for real estate in a scenario where AI is part of every aspect of our life. How can we turn the transformation into opportunity and stay competitive?

We're already witnessing the growing influence of advanced computing and AI across all aspects of life, a trend that is expected to accelerate in the coming decade. Here are 6 key components that signal the direction and scale of how this change could play out.

This work product was created with assistance from generative AI.

Design: new patterns for creation, construction and operation

Architects will augment human creativity with AI to help visualize new schemes based on their back catalogue of designs, their design approaches and stylistic methods. 

AI will also be integrated into building Digital Twins to make designing models faster and more accurate. These technologies together will improve operational effectiveness, and enhance building sustainability by prioritizing reductions in energy and water consumption, so performance is optimized at the design stage by simulation. Portfolio data interactions will be through a more intuitive interface, such as a conversation.

Automation and robotics will reach the tipping point in the construction sector to meet labor shortages, enhance on-site safety and reduce costs through streamlined processes which speed up construction and reduce waste. Robotics will similarly enhance maintenance and facilities management.

When combined with a mindset which prioritizes sustainability, these advances will drastically reduce the environmental impact of buildings by improving and adjusting operational performance in real time and more effectively fulfilling the growing demand for the renovation and repurposing of existing assets.

Imagine a world where real estate owners can access building performance data for their entire portfolios, from anywhere; where tenants can track carbon emissions, and progress against sustainability targets, in real time.

This work product was created with assistance from generative AI.

But these changes depend on developing talent with a real estate-focused AI skillset. The real estate industry will be compelled to build its own AI workforce, through upskilling and attracting new tech talent. 

A change in mindset to a “fast iteration” style of working will speed up the pace of innovation in real estate, making it more compatible with new styles of working and the pace of change in technology.

An action plan for real estate 

The future can seem intimidating, but the best way to be resilient to change is to be part of it. Scenarios-based analysis allows us to consider future change, challenge current paradigms and create an action plan for adaptability and resilience. The future will be created through the collective decisions we consciously make now. To prepare, real estate investors, developers and corporate occupiers must: 

Stay relevant, get involved

• Proactively collaborate with governments, educational institutions and industry bodies to play a role in creating the new ecosystem of the built environment.
  
• Focus on training and upskilling real estate professionals and embrace tech talent in real estate organizations. 
• Have a strategic view on industry shifts and consider the impact on relevant sectors and businesses in certain markets.
• Adopt a robust ethical use framework which guides the integration of AI and emerging technologies into real estate businesses.

Be human

• Craft human-centric spaces, where the digital and physical is integrated, seamless and subtle.
  
• Recognize the shifting demand for different types of space and the tech needs of different working generations (Gen Z, Millennials) in buildings.

Build and operate intelligently

• Start to digitize and build technology capabilities now in preparation for AI integration in the built environment, even if the complete picture is as yet unclear.
  
• Adopt a new “fast iteration” mindset, which means rapidly testing and refining ideas.
• Map out the new lifecycle(s) of real estate. Embrace AI for modelling and simulations in the design, investment, development and use of buildings.

The time to prepare is now

Computing and other technologies are not externalities on a distant horizon but are already integral to real estate and its future. There is a technology imperative to prepare for and real estate must be open to new business models, new ways of using physical space and supporting new industries. The time to prepare is now. 

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