Australia Leads in AI Adoption and Building Refurbishment in APAC in 2025

9 April 2025
Alan McKay, JLL's Managing Director, Project & Development Services ANZ

New JLL research points to growing influence of AI on design in commercial real estate

JLL has revealed critical design trends set to reshape the Asia-Pacific property landscape by 2025. The findings highlight the growing influence of AI and science-led design across the region, with particular insights into Australia’s position.

The “JLL Outlook on Design Trends 2025” report paints a picture of a region at the forefront of technological innovation in real estate. An impressive 90% of APAC organisations surveyed plan to accelerate investment in AI over the next five years, with Australia leading at 94%.

“APAC businesses are recognising that AI and data-driven design are crucial for creating spaces that adapt to people’s needs,” said Alan McKay, Managing Director, Project & Development Services ANZ. “This is sparking a major rethink in how we approach real estate design, with a focus on creating sustainable, efficient, and human-centric environments.”

In Australia, the adoption of new workplace policies and investment in existing structures is notable. 83% of Australian organisations have implemented policies for at least three days of office attendance per week, slightly below the APAC average of 85%. However, Australia leads in building refurbishment, with 63% of employers planning to increase investment in existing building upgrades over the next five years, significantly higher than the APAC average of 54%.

The report reveals significant growth in capital funding for Generative AI, particularly in cities like Beijing and Shanghai, which allocated $840M and $600M respectively in 2024. This trend is driving innovation in PropTech, with an increasing number of AI-powered companies influencing future space design.

“We’re seeing a shift beyond traditional design approaches,” Alana Hannaford – Head of Project & Development Services Advisory, Australia explained. “Property owners and developers across APAC, particularly in Australia, are embracing science-led design strategies that integrate data analytics, neuroscience, and AI to create more effective and responsive spaces.”

The report also highlights the importance of local identity and community impact. 89% of Australian consumers would prefer to live in a place with a unique sense of identity, higher than some other APAC countries like Singapore (79%) and Hong Kong (75%). Additionally, 82% of Australian consumers agree that it’s important for businesses to make a positive impact in their local community, indicating a growing demand for socially conscious developments.

As APAC cities continue to evolve, the report suggests that success will hinge on the ability to leverage AI and data-driven design approaches. With changing work patterns and increasing employee expectations, these technological advancements are set to play a crucial role in shaping the future of commercial real estate across the region.