Demographic trends are a major driver of changing demand for space, particularly generational differences. Ageing populations in developed economies and younger, fast-growing populations across much of the Global South are poised to significantly influence real estate development and investment. Younger generations are demanding more flexible and affordable living arrangements, with many preferring vibrant, mixed-use neighbourhoods over traditional, single-use developments and paying attention to sustainability criteria. As populations age, particularly in Europe, Asia Pacific and North America, the demand for properties that cater to older adults is expected to surge. This shift will bring a heightened focus on healthcare facilities, senior living accommodations and appropriately amenitized housing in support of liveability goals. Real estate developers will need to incorporate features such as accessibility, safety and proximity to medical services while also responding to a growing preference in some regions for “ageing in place”, which emphasizes residential adaptability to accommodate seniors who prefer to remain in their homes. Infrastructure investment priorities will also shift to accommodate an ageing population. Mobility and accessibility will be key concerns, with increased investment in transport infrastructure that supports easy, barrier-free movement for older individuals. Additionally, healthcare infrastructure will require expansion, not only to meet the demand for medical facilities but also to ensure that such services are equitably distributed, particularly in regions where ageing populations are more concentrated. Looking forward, the success of real estate developments will increasingly depend on their ability to adapt to changing circumstances and meet a wide range of user needs. This will require real estate developers, investors and city planners to adopt innovative approaches and think creatively about how spaces can be reconfigured, repurposed and optimized over time.1.1 Demographic driversThe human relationship with buildings and cities is undergoing a deep and lasting transformation. Around the world, people are rethinking the purpose and function of the spaces they live, work and socialize in, leading to a shift in how office, residential, retail and other property types are designed and used. No longer seen as fixed, singular-use structures, buildings are increasingly being viewed as flexible, multi-purpose environments that can adapt to the changing needs of individuals, communities and economies. In cities across Europe, North America, Asia and Africa, there is a growing understanding that buildings constructed or improved today must be more human-centric, prioritizing the well-being of their users and cultivating social connectivity. Median age of the population by region FIGURE 2 102030405060Median age World Europe Northern America Oceania Asia0 1990 2020e 2050f Source: United Nations. (2022). World Population Prospects 2022. Reimagining Real Estate: A Framework for the Future 8

Reimagining Real Estate 2024