In the ever-evolving landscape of real estate, understanding the forces that shape our cities is crucial for investors, developers, and policymakers alike. A recent study published in the journal *Buildings & Cities* (translated from Finnish as “Buildings and Cities”) sheds light on how market participants in Eastern Europe perceive the future of housing, retail, and office spaces. Led by Saija Toivonen from the Department of Built Environment at Aalto University in Espoo, the research delves into the megatrends and weak signals that could redefine urban environments.
The study, which surveyed over 840 real estate market participants, reveals that digitalisation and environmental pressures are seen as the primary drivers of future spaces. Traditional factors like location, accessibility, and economic drivers, while still important, are increasingly overshadowed by these new forces. “Digitalisation and environmental pressure are perceived as the primary drivers of future spaces,” Toivonen notes, highlighting a shift in priorities within the industry.
One of the most compelling findings is the comparatively limited influence of sustainability on office spaces compared to its impact on retail and housing. This discrepancy raises questions about the sector’s focus and whether it is adequately addressing the holistic needs of urban environments. “Technological development and digital transformation seem to eclipse the sector’s attention to demographic factors and sustainability concerns,” Toivonen observes, pointing to a potential gap in strategic planning.
The research also identifies weak signals that could drive future development, such as multicultural and generational space use, the role of urban nature, and innovations in the built environment. These emerging phenomena suggest that the real estate sector must be more adaptable and forward-thinking to meet the diverse needs of future urban dwellers.
For the energy sector, these findings are particularly relevant. As digitalisation and environmental pressures reshape real estate, there is a growing need for energy solutions that are both innovative and sustainable. The study’s emphasis on hybrid working and climate risks underscores the importance of integrating energy-efficient technologies and renewable energy sources into future developments.
The research also highlights a preference among real estate market actors for a long-term time horizon in decision-making, which contradicts many current practices. This long-term perspective could drive investments in energy-efficient buildings and sustainable urban planning, ultimately benefiting the energy sector by creating a market for advanced energy solutions.
Toivonen’s findings provide a roadmap for real estate owners, developers, and public sector stakeholders to develop futures-oriented processes and strategies. By understanding the diverse drivers and possibilities ahead, these actors can shape urban environments that are resilient, sustainable, and adaptable to future needs.
As the real estate sector navigates these changes, the insights from this study offer a valuable guide for shaping the cities of tomorrow. By embracing digitalisation, environmental sustainability, and innovative urban planning, the industry can create spaces that meet the evolving demands of society. The research, published in *Buildings & Cities*, serves as a timely reminder of the need for a holistic approach to urban development, one that balances technological advancement with environmental stewardship.