Executive summary Liveability, sustainability, resilience and affordability are essential for real estate to advance our shared future. Responding to the profound impact of COVID-19 on economies and populations globally, the World Economic Forum introduced A Framework for the Future of Real Estate in 2021. Reflecting insights from a global community of forward-looking real estate leaders, the framework set a vision consisting of four pillars: liveability, sustainability, resilience and affordability. Since then, communities worldwide have embraced new ways of living, working and using technology, often impacting real estate. Meanwhile, developers, investors, lenders and others face headwinds from a redrawn capital markets landscape driven by central banks’ response to inflation. Despite these shifts, liveability, sustainability, resilience and affordability remain key to long-term value and shared prosperity. This framework draws from interviews with industry leaders and outlines specific calls to action for both the public and private sectors to drive progress. Public sector actions: Clear and standardized regulatory frameworks: Transparent laws, streamlined zoning and permitting processes, and reduced bureaucracy boost confidence and efficiency in real estate markets. Encouraging an information-rich market: Promoting data accessibility, standardized reporting and mandatory disclosures reduces information asymmetries, enabling a competitive and efficient market. Infrastructure development: Investments in transport, utilities and public spaces improve returns on collocated real estate. Financial market stability and access to capital: Policies encouraging a diverse array of capital market participants, including banks, private lenders and institutional investors, help ensure resilience across economic cycles. Financial incentives: Strategic deployment of tax incentives, grants and discounted credit instruments can attract private investment, especially in underdeveloped areas or for affordable housing.Economic stability and growth: Policies that promote sustainable growth, job creation and income stability attract private capital and boost demand for residential and commercial properties. Private sector actions: Leadership and accountability: Embedding the framework’s pillars into organizational goals and performance metrics ensures alignment and collaboration across teams. Information, measurement and disclosure: Using advanced analytics, artificial intelligence (AI) and property technology (proptech) can improve decision-making and reporting. Comprehensive disclosures on property performance, sustainability and market trends build investor confidence and facilitate efficient resource allocation. Technology: Technologies like smart building systems, AI-driven energy management and predictive analytics can enhance occupant experiences, optimize energy use and reduce operational costs. Capital markets: A robust capital stack with traditional and non-traditional debt and equity is key to handling cash flow and valuation disruptions. Higher reserves, conservative loan-to-value (LTV) ratios, stringent reporting, and hedging tools can mitigate risks and support financial stability. Diversified portfolios should be a priority for lenders and investors. Resilience and sustainability criteria: By prioritizing assets that meet high environmental standards and exhibit adaptability to evolving market needs, investors can create portfolios that are not only more sustainable but also more attractive and liquid in the long term. By focusing on these actions among others, the real estate sector can adapt to evolving challenges while driving sustainable, long-term growth. The alignment of public and private efforts around shared goals ensures a more resilient, inclusive and forward-looking real estate ecosystem. Reimagining Real Estate: A Framework for the Future 4

Reimagining Real Estate 2024