The rapid growth of cities and the urban middle class gives rise to a new “experience economy”, combining human-centric designs and community-based spaces. As a result, consumers will seek higher-quality experiences from the built environment anchored by people-first design that promotes community and connection, according to JLL’s 2024 Global Consumer Experience Survey.
JLL has identified creating destination spaces; integrating experience across real estate developments; connecting the physical and digital; focusing on human-centric design; and understanding the value drivers of shared experiences as the top five priorities consumers are now seeking in urban living environments. Furthermore, with most consumers willing to pay more for higher quality experiences, tapping into this need for connection and community can play a differentiating role in the future success of real estate developments, the analysis said.
“It’s people we ultimately build places for, and understanding what they need first is imperative,” said Lee Daniels, JLL Global Growth and Innovation Lead, Work Dynamics. “By developing comprehensive experience strategies that encompass multiple dimensions, we recognize that it is people who transform places and spaces, while experiences and interactions ultimately shape people.”
According to JLL, increased wealth, digitization and technology are driving demand for more value from offline experiences, and urban environments will be forced to adapt. In fact, over three quarters (76%) of people agree that cities need to offer new experiences to stay relevant. This is especially true of younger generations, with 84% of Millennials and Gen Z agreeing.
Additionally, the majority of respondents across different generations and regions consider experience important in choosing where and how they spend leisure time and their related purchasing, from a desire to travel to new places, wanting unique urban experiences, and prioritizing in-person activities. Respondents also share they are willing to pay a premium for this quality, especially among Millennials (80%).
While 75% of consumers report feeling satisfied with online shopping experiences, people still express a preference for being in-store – where the majority of consumers (64%) say they prefer shopping in-person versus online. Developers and investors can capitalize on these desires, filling the gap with experiential retail and online/offline services, such as integrating digital strategies to allow a digital overlay for a more personal in-person experience, using different booking apps, digital enhancements and even augmented reality technology.
The survey captures data from over 3,200 global respondents to understand how stakeholders involved in creating, owning and managing corporate real estate can adapt to shifting consumer expectations to unlock greater value in their portfolios.
