How new economic models are reshaping cities

In cities around the world, four fast-evolving economies are making their mark

December 19, 2019

No modern city is immune to the new economic models changing how we use, and think about, the built environment. 

Take the sharing economy, which includes innovations like coliving, coworking and ridesharing. In the space of a decade, these have become an integral part of big city life.

Then there’s the innovation economy, experience economy and circular economy, according to JLL’s Demand and Disruption report. These four models, driven by evermore sophisticated technologies and new social norms, are transforming the very way our cities operate.

How they are evolving, and at what speed, varies throughout the world. Yet cities with global ambitions need to invest in them if they’re to gain a competitive edge.

Indeed, getting it right can be a game changer for successful cities looking to attract interest from businesses and investors, says Jeremy Kelly, Lead Director, Global Research Programmes at JLL.

“These new economic models are shifting attention to how cities build a customer-service culture, foster urban experiences, expand innovation industries and adopt new business models to achieve sustainability,” he says. “Cities that adapt will enjoy new and more sources of real estate demand.”

Watch the video and download the report to find out more about these different economies and how they’re impacting real estate.