A Tale of New Cities
The Evolving Property Universe: How Global Cities are Shaping the Future of Urban Development
As the summer months draw to a close, for Britain at least, the pool-side thoughts of the Autumn season ahead lead me to think about what’s tangibly changed in the world around us, and in particular urbanisation – has it moved forward?
Major cities have evolved beyond mere centres of commerce and population—they are dynamic ecosystems where innovation, sustainability, and resilience are essential for thriving in this rapidly changing world.
At Innesco, our ongoing ‘Property Universe’ campaign seeks to shine a torch (or a flashlight, to our American friends) on these transformations, showcasing how leading players in the property industry are responding to new trends and challenges. And how great communication of small and large initiatives is making a big impact.
The Rise of Major Cities as Global Hubs
The increasing significance of major cities is evident in their central role in addressing global challenges, such as climate change, sustainable development, and the digital revolution. Events like MIPIM 2024, Cityscape Global Riyadh 2023, and UKREiiF 2024 in Leeds highlighted how cities are at the forefront of pioneering projects aimed at creating more resilient, inclusive, and technologically advanced urban environments.
Cities are not just expanding—they are evolving. And this evolution and growth is driven by several key trends, including the shift towards more flexible mixed-use developments, the re-use and adaptation of obsolete spaces and buildings, the integration of smart technologies, and a stronger focus on creating more sustainable and liveable urban spaces. The ability to adapt to new consumer trends, shifting politics, evolving working patterns, and changing travel, logistics, and tourism dynamics has been vital for cities looking to maintain their competitive edge on the global stage.
While in the UK the topic of NIMBY-ism is back up the agenda - thanks to a new Government seeking to relax planning legislation - the role of major cities in shaping the future of the property industry has never been more critical.
So, here are the Key Development Themes Shaping the Global Property Industry as we see them, reflecting the need for cities to be more responsive to the demands of their inhabitants and the environment:
1 - Sustainable Urban Development: Despite some asset managers like Blackrock downgrading their commitment to ESG initiatives (FT ), sustainability is no longer a buzzword, but in fact a core principle of urban planning. Oslo is a standout example, with ambitious targets for carbon neutrality driving the transformation of former industrial areas into eco-friendly neighbourhoods. The #Bj?rvika waterfront development in the city, behind the Central Station, exemplifies this trend, led by one of our clients OSU - combining residential, commercial, and recreational spaces with innovative green building practices. Back in 2020, the US’s two most populous cities LA and New York joined Pittsburgh, New Orleans, London, Berlin, Oslo, South Africa’s Cape Town and Durban, England’s Bristol, Italy’s Milan and Canada’s Vancouver in pledging to take “all possible steps to divest city assets from fossil-fuel companies and [increase] financial investments in climate solutions (LA Times ). Oslo’s commitment to sustainability isn’t new – they have been reshaping the city into a model of modern urban living, and were seen flying this flag at MIPIM for many years, having been the #EuropeanGreenCity in 2019, just before the pandemic.
As European cities intensify their efforts to reduce carbon emissions, local initiatives are becoming pivotal in the journey towards a net-zero future. The Sustainable Cities Mobility Challenge , with the backing of 联邦快递 and EIT Climate-KIC RIS , is at the forefront of this movement, enabling cities to embrace cutting-edge mobility solutions that not only advance sustainability but also enrich quality of life and stimulate economic prosperity. Now in its second year, the Challenge has spotlighted a range of innovative projects designed to revolutionise urban transport systems. These initiatives are not merely isolated experiments; they are integral components of a broader initiative to reshape urban mobility across Europe. In this update, we showcase five leading cities that are pioneering cleaner, greener, and more people-focused mobility solutions. Cities include #Liverpool, #Lisbon and #Urecht.
2 - Legacy Projects: The concept of legacy projects, particularly in cities that have hosted large-scale events like this summer’s Paris Olympic Games, is becoming increasingly relevant. At MIPIM 2024, Jules Pipe spoke eloquently about London’s Queen Elizabeth Olympic Park and how it has been successfully transformed into a vibrant community hub, blending residential, retail, and cultural spaces. Similarly, Paris is seeking to leverage its infrastructure and profile from the 2024 Olympics through the team at Choose Paris Region to drive significant urban improvements, particularly in its less affluent northern districts. Read more about the importance of legacy to Paris in Paris2024.org ’s research paper HERE .
3 - Smart Cities: The integration of technology into urban planning is redefining city living. Riyadh’s Vision 2030 is a bold initiative to transform the city into a global hub of innovation, with smart city projects enhancing connectivity, optimising energy use, and improving quality of life. The Diriyah Company l ???? ??????? giga-project is a prime example, blending cultural heritage with cutting-edge technology to create a unique urban experience – and despite its ongoing development through the next 5-10 years is already part of the exceptional Riyadh Seasons event programme, having already delivered Bujairi Terrace dining excellence to the city. Green Street News highlighted how Riyadh’s smart city initiatives are setting new benchmarks for urban development. Let’s also not forget the news from last November that Saudi Arabia will host the #WorldExpo in 2030, with Riyadh winning the vote by a convincing margin, securing 119 out of 165 votes from the member states of the Bureau International des Expositions in Paris. The G20 Kingdom of Saudi Arabia is leapfrogging generations of experience, with Riyadh leaving many other cities for dust.
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4 - Adaptive Reuse and Regeneration: Cities are increasingly focusing on the adaptive reuse of existing structures to meet modern needs. London’s Battersea Power Station redevelopment is the poster boy, landmark project that has revitalised historic and iconic buildings for contemporary purposes, blending residential, retail, and cultural spaces in a way that respects the past while embracing the future. Similarly, Hudson Yards New York transformed a once-neglected area into a vibrant urban quarter. The media has discussed how adaptive reuse projects are not only preserving architectural heritage but also creating economic value – notably Green Street news HERE .
5 - Cultural and Recreational Spaces: The property industry has often been criticised for taking an economic and scientific approach to urban regeneration, while the importance of cultural and recreational spaces in urban life cannot be overstated. Albeit with a few hiccups on water cleanliness, Paris revitalised the River Seine in preparation for the 2024 Olympics, transforming the riverbanks into pedestrian-friendly zones with green spaces, art installations, and cultural venues. Le Monde reported that these developments are boosting tourism and improving the quality of life for Parisians, setting a benchmark for urban regeneration worldwide – whilst in some cities like Amsterdam, the topic of ‘over tourism’ was debated - a term first used by journalist Freya Peterson from the Sydney Morning Herald. It’s been picked up broadly again this year, notably by the World Economic Forum asking what can be done to overcome its challenges (see HERE ).
6 - Adapting to New Consumer Trends and Working Patterns. The rise of remote work, the growing importance of wellness, and changing consumer preferences are prompting cities to rethink their development strategies. The demand for flexible working spaces, flexible “chameleon” spaces, the integration of wellness amenities into urban design, and the need for resilient and adaptable infrastructure are shaping the future of urban development.
Cities are also responding to evolving travel, logistics, and tourism dynamics. The shift towards sustainable transport, the rise of e-commerce, and the increasing importance of experiential travel are influencing how cities plan and develop urban spaces. Projects like London’s Crossrail, Elizabeth Line and Oslo’s Fornebu Line are transforming urban mobility, making cities more accessible and connected. CoStar News has recently highlighted how these infrastructure projects are set to redefine urban connectivity, read more here .
Innesco’s Perspective on the Future of Urban Development
At Innesco, we understand that grasping these trends is crucial for staying ahead in the property universe. Our work is rooted in the belief that cities are engines of growth and innovation, and we are committed to helping our clients navigate the complexities of urban development in this rapidly changing world.
The rise of major cities, the global themes of sustainable development, smart cities, adaptive reuse, and the evolving needs of consumers are all integral to the property universe. By staying attuned to these trends and leveraging our expertise, we can continue to support the growth and success of leading players in the industry.
Invitation to Engage!
As we look to the future, it’s clear that cities embracing innovation, sustainability, and adaptability will be the ones that thrive. At Innesco, we are excited to be part of this journey, helping to shape the future of urban development globally. We invite our readers and industry peers to share their insights and experiences as we navigate this exciting landscape together. How are your cities adapting to these global trends? What innovative projects have caught your attention? Let’s continue the conversation and shape the future of urban living.
As part of our ‘Property Universe’ campaign, we remain dedicated to providing thought leadership and strategic insights to help shape the future of urban development globally – we hope you enjoyed your summer!
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Dan Innes, MD + Founder, INNESCO
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