About the Report
Cities are engines of both economic growth and emissions. Home to 56% of the global population—a share forecast to approach 70% by 2050—they generate over 80% of global GDP. But they also produce 70% of CO₂ emissions, with inefficient buildings and infrastructure being a major source of emissions. Radical retrofit: adapting cities for a resilient future spotlights the role of built environment retrofitting in transforming urban landscapes into climate-resilient, people-centric environments by optimising underused space and creating healthier, more engaging workplaces. Drawing on a survey of senior business leaders in the built environment sectors and expert insights from a wide range of stakeholder voices, the report explores how both mature and emerging cities are navigating the retrofit imperative across 12 cities: Berlin, Delhi, Dubai, London, Los Angeles, Mexico City, New York City, Paris, Singapore, Sydney, Tokyo and Washington, D.C.
Key highlights from the report
Retrofitting is gaining momentum but remains far from scale.
Nearly 70% of surveyed respondents say retrofitting has increased as a share of business over the past three years. To align with climate goals, the retrofit rate must accelerate from today’s 1% to around 3% annually. The urgency is greatest in developed countries where most buildings that exist today will also exist in 2050.
Energy efficiency retrofits lead the way globally
Types of retrofits most commonly undertaken in respondents’ city of operations
Government mandates and incentives are the strongest catalysts of retrofitting.
Cities like Tokyo, Washington, D.C., and Singapore show how performance standards, targeted financial support, and “retrofit-first” policies can drive significant emissions reductions and enhance urban livability.
Market forces and investor sustainability goals are boosting retrofits in the commercial sector.
Retrofitted commercial properties deliver tangible value gains such as lower and more stable operational costs, enhanced tenant retention, and better talent attraction.
Financial barriers and misaligned incentives are some of the most cited obstacles to scaling retrofits.
61% of respondents identified owner hesitancy due to high upfront costs and uncertain returns as the top barrier, while 51% pointed to weak investor interest.
Cross-sectoral collaboration between policymakers, owners, investors and technology providers is critical to accelerate retrofitting progress. Six critical pathways need to be activated.
Building awareness among all stakeholders
From awareness to action: implementing policy action
Quantifying the benefits of retrofits beyond energy savings
Unlocking innovative financing mechanisms
Leveraging emerging technologies for scale and speed
Addressing the talent bottleneck
Radical retrofit: adapting cities for a resilient future
By 2030, urban populations will grow by 2bn—equivalent to adding seven megacities a year. Urban areas are both major emitters and vulnerable to climate impacts. At the same time, shifts in work patterns, including hybrid work, are increasing demand for flexible, tech-enabled, high-performing spaces.
Retrofitting refers to the enhancement and improvement of built assets resulting in energy efficiency, lower emissions and greater resilience. Retrofits can not only play a vital role in value creation for owners, investors and tenants, but can also enhance urban resilience, wellbeing and social cohesion.
69% of organizations surveyed by Economist Enterprise reported a shift in their business mix towards retrofitting in the past three years. At the city level too, our research shows a promising shift.
Most surveyed markets seeing a strong move toward retrofitting
% of respondents
Note: the percentages refer to the share of respondents in each city that noted that the mix between retrofitting and new construction in their business has either significantly or moderately shifted towards retrofitting in the last three years.
Retrofitting offers more than utility savings—it supports tenant retention and healthier, more productive workplaces, delivering hard-to-measure but vital returns.
Top three benefits of retrofitting valued by tenants, owners and investors
A lack of motivation among developers and owners to undertake retrofits due to the high upfront cost coupled with uncertain returns on investment and inability to lease space at rents necessary to break even is the most cited obstacle to retrofitting.
High upfront costs of retrofitting are a top challenge across the surveyed cities
The future outlook for building retrofits remains cautiously optimistic
While almost one third of survey respondents foresees significant growth in retrofitting with substantial investment and widespread adoption, half anticipates moderate growth, with new construction remaining a primary growth sector.
Future-proof your ageing buildings
As a multi-disciplinary real estate advisory and services business, JLL illuminates a brighter way forward through comprehensive retrofitting solutions that integrate expertise and market intelligence.
Our end-to-end process—from asset evaluation and strategy to implementation and divestment—maximizes value while minimizing risk, effectively future-proofing your real estate.
JLL Research: Opportunity through obsolescence: assets
This research explores strategies for repositioning at-risk real estate assets. It analyzes six drivers of obsolescence across functional, locational and regulatory dimensions, presenting a gradient of investment approaches from light retrofits to complete conversions to create value in aging properties.