A Framework for the Future of Real Estate

The World Economic Forum presents a framework for the future of real estate based on four pillars: liveability, sustainability, resilience, and affordability. It identifies digitalization, talent, value-proof business cases, stakeholder engagement, and regulatory frameworks as key enablers. The report analyzes these pillars across various asset classes, arguing that offices must adapt to hybrid work, industrial real estate must automate for e-commerce, retail must shift to omnichannel experiential models, and housing requires public-private collaboration to solve affordability crises. It emphasizes that buildings account for nearly 40% of global greenhouse gas emissions, necessitating urgent decarbonization through retrofitting and circular construction.

• The real estate industry is guided by four central pillars for future development: liveability (enhancing human experience), sustainability (optimizing for zero carbon), resilience (adapting to shocks), and affordability (ensuring fair access to quality space).
• Buildings are a primary driver of climate change, contributing nearly 40% of global greenhouse gas emissions. Achieving net zero requires accelerating energy retrofits for existing stock and prioritizing the repurposing of buildings over demolition to avoid high embodied carbon costs.
• The office asset class must transition to a hybrid work model to remain viable. While offices remain essential for 'colleagues, culture and collaboration', design must shift from individual desk-centric layouts to activity-based workplaces that prioritize connectivity and employee well-being.
• Industrial and logistics real estate are being transformed by e-commerce, necessitating increased automation and the integration of 'last-mile' delivery centres within urban cores to reduce costs and delivery times.
• Retail real estate must move toward an omnichannel strategy where physical stores serve as experiential hubs to drive brand loyalty and generate customer data, rather than being measured solely by revenue per square metre.
• Addressing the global housing affordability crisis requires a holistic approach including increasing unit supply through state-owned land use, reducing construction costs via digital twins and prefabrication, and implementing tailored financing models.
• The hospitality sector faces severe financial distress due to low occupancy rates and must survive by repurposing assets (such as converting hotels to residential use) and personalizing guest experiences through digitalization.
• Digitalization is a critical cross-cutting enabler across all asset classes, allowing for the creation of 'autonomous buildings' that adapt to occupant needs and the use of BIM-based material passports to support circularity.

APA

World Economic Forum (2021). A Framework for the Future of Real Estate. http://www3.weforum.org/docs/WEF_A_Framework_for_the_Future_of_Real_Estate_2021.pdf

Chicago

World Economic Forum. A Framework for the Future of Real Estate. 2021. http://www3.weforum.org/docs/WEF_A_Framework_for_the_Future_of_Real_Estate_2021.pdf.

Wikipedia

{{cite report |author=World Economic Forum |title=A Framework for the Future of Real Estate |date=April 2021 |url=http://www3.weforum.org/docs/WEF_A_Framework_for_the_Future_of_Real_Estate_2021.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{worldeconomicforum2021framework, author = {{World Economic Forum}}, title = {{A Framework for the Future of Real Estate}}, institution = {World Economic Forum}, year = {2021}, month = apr, url = {http://www3.weforum.org/docs/WEF_A_Framework_for_the_Future_of_Real_Estate_2021.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }