Unlocking urban futures: our 10 trends for cities in 2025
By | 2024
As we approach 2025, cities stand at a pivotal crossroads. With over half the global population participating in elections in 2024, the year behind us has been a defining moment in shaping priorities and setting the course for urban development.
Cities are grappling with complex challenges—from addressing the urban impacts of climate change and housing crises to harnessing cutting-edge technologies to improve lives. Yet, within these challenges lie opportunities to innovate, adapt and build a more sustainable urban future.
This article explores 10 key trends that are reshaping urban management and transforming the social and economic fabric of cities. It’s not just about solving problems; it’s about rethinking how cities can work better for people, opportunities and the environment.
Let’s dive into how these shifts are transforming the future of cities in 2025.
1 | Cities that embed innovation to overcome fragmented governance will lead the way in effectively addressing urban challenges
From leveraging the latest AI disruptions for better city management to addressing the globally widespread housing crisis, this article highlights a range of pressing issues that city governments must tackle. However, the challenges faced by local administrations and civil servants are far from monolithic or disconnected. In fact, they can often be more difficult to solve because they are cross-departmental in nature. Ever-changing financial resources and political priorities can also hinder the ability to test and implement innovative yet necessary solutions.
This is why the first trend cities should focus on in the upcoming year is embedding innovation effectively—breaking down internal silos and creating integrated benefits. This approach is key to tackling multidimensional urban challenges. Projects like Vilnius’ city-wide open school concept or Freetown’s ambitious reforestation project demonstrate that empowering civil servants and fostering collaboration across departments can yield substantially better, more impactful results. Hopefully, these approaches will gain traction and be widely adopted by cities around the world in 2025.
2 | Urban resilience will move from theory to action, empowering cities to confront the climate emergency head-on
In 2025, cities will increasingly prioritize actionable strategies to address the growing impacts of climate change, moving beyond conceptual frameworks to implement tangible solutions. Urban resilience will manifest in policies like water management, nature-based solutions and community engagement. Climate change is intensifying water-related challenges, such as erratic droughts, devastating floods, and pollution of already scarce water resources. Recognizing that only 1% of Earth’s water is accessible for human use, cities must adopt integrated strategies, including rainwater harvesting, wastewater recycling, and green infrastructure, to secure sustainable and equitable access.
Central to urban resilience in 2025 will be forward-looking governance that integrates resource loops and circular economy principles. Cities are expected to lead by scaling up greywater reuse systems, where wastewater from sinks and showers is repurposed for irrigation or flushing toilets. Collaborative governance frameworks will bring together municipal authorities, private sectors, and communities to align efforts and pool resources. Additionally, digital solutions such as smart water grids and IoT-based leak detection systems will transform how cities monitor and manage water.
By embedding these technologies into urban planning and adopting governance models that prioritize equity and sustainability, cities will position themselves as global leaders in climate resilience, ensuring their water systems are not only sustainable but also adaptable to the changing demands of the future.
3 | Cities that move Digital Twins from concept to practice will unlock unprecedented levels of «smartness»
What could make a city smarter than seamlessly simulating a range of potential interventions—from climate scenarios to new public transport routes—and testing creative ideas while understanding the outcomes of these hypothetical projects? This is the essence of Digital Twins, and we are witnessing their rapid expansion across urban areas worldwide. This is no coincidence. Advances in technologies like IoT, cloud computing, and artificial intelligence now enable the collection, processing, and analysis of vast amounts of real-time data, allowing cities to model various scenarios with greater precision.
Cities such as Singapore, Barcelona or New York City are already reaping the benefits of their own City Digital Twins—digital replicas that integrate real-time data from multiple sources into a unified 3D model. These models provide deeper urban insights through robust, data-driven simulations, supporting informed, agile decision-making while enabling the simulation of different scenarios to guide infrastructure planning and policy changes.
By 2025, the cities that will lead the way will be those that successfully implement their own City Digital Twin. It’s not just about conceptualizing and designing these models; it’s about accurately identifying the use cases that best align with a city’s specific needs. After all, predicting the urban future has never been more accessible or straightforward.
4 | Solving the housing crisis will only become a reality by prioritizing the most vulnerable
According to the World Economic Forum, 1.6 billion people worldwide lack adequate housing—and this number could rise to 3 billion by 2030. To address this, the world will need to build 96,000 new affordable homes every day, according to UN-Habitat. This has a clear correlation with where the most people live: cities. For them, it is impossible to look the other way. In broad terms, the housing crisis is reshaping urban life, deepening inequality, and testing the resilience of cities. Skyrocketing costs and dwindling supply have left vulnerable groups—young people, low-income families, and migrants—struggling to find stability. Beyond displacing communities, the crisis undermines cities’ ability to retain talent and drive economic growth.
Tackling this challenge requires bold, inclusive strategies. Affordable housing policies, rent controls, and investments in social housing are essential, as is the role of technology and partnerships in fast-tracking sustainable solutions. Mixed-income housing and targeted subsidies can help bridge affordability gaps, ensuring fair access for all.
Stable housing is more than just shelter; it’s the foundation of thriving, adaptable cities. Collaborative efforts—uniting governments, developers, and communities—are crucial to addressing diverse needs. By securing housing for everyone, cities can create environments that nurture innovation, resilience and social cohesion.
5 | Building innovations will shift toward bold retrofitting and transformative upgrades, fueled by a commitment to radical sustainability
As we rethink housing, how will the way cities design and construct buildings evolve by 2025? Buildings are major contributors to global energy use (36%) and CO2 emissions (39%), so it’s no surprise that improving their efficiency will be a central focus in the years ahead. Innovations in construction will continue to reshape the built environment, blending technology and sustainability to tackle the industry’s environmental challenges.
New technologies like the Internet of Things (IoT) are already transforming how buildings function. Smart sensors can track energy and water use in real time, helping to conserve resources and detect maintenance issues before they escalate. Tools like Building Information Modeling (BIM) allow planners to optimize a building’s entire lifecycle, reducing waste and improving energy efficiency. Artificial intelligence (AI) takes this a step further by analyzing usage patterns to further reduce energy consumption and enhance operational efficiency. These innovations are not only environmentally beneficial—they’re also highly practical. Green buildings can cut energy use by up to 50%, save 40% on water, and reduce operational costs by 12%. With projects like Barcelona’s sustainable housing prototypes and Europe’s carbon-neutral Model Home 2020, smart cities are proving that sustainable construction is not just a trend, but the future of urban development.
6 | Only cities that adopt a 360° approach to tourism will turn it into a true engine of lasting social and economic prosperity
According to UN Tourism, around 790 million tourists traveled internationally in the first seven months of 2024—an 11% increase from 2023 and only 4% less than pre-Covid levels. It’s hard to imagine that 2025 won’t be the year we see the highest number of tourists in history. However, this growth brings with it a set of urban tensions that can’t be ignored. From rising housing costs for locals to pressures on cultural heritage, neighborhood unrest due to overcrowding and the environmental impact of air travel and cruise ships, the not-so-bright side of tourism remains evident for those who feel left out of the benefits—or even harmed by it.
Planning tourism in a territory requires finding common ground among governments, local communities, tourism operators, and visitors-now more urgent than ever, no matter how simple it may seem. Incorporating a data-driven culture into decision-making processes, while actively including and engaging all stakeholders—governments, local communities, tourism operators, and visitors—enables cities to understand tourism dynamics before, during, and after the visitor experience, paving the way for a balanced and inclusive approach to urban tourism.
Cities that succeed in adopting a 360° view-one that balances both its benefits and externalities by leveraging good quality data and information, will turn it into a true driver of sustainable prosperity. These cities will consider all aspects of urban life, engaging stakeholders across the tourism sector, and balancing environmental, economic, and, crucially, social factors to create thriving ecosystems for all.
7 | Strategic City Branding will become a critical tool for cities to enhance their economic competitiveness and global reputation
Just as broadcasting platforms battle for viewers’ attention, cities are fighting for visitors, investors, and global opportunities. In today’s highly competitive world, standing out is essential to getting noticed. We live in an era flooded with information and choices, where people deciding where to invest or settle have countless options at their fingertips.
For cities, proving they are the best—or even the most unique—is no longer optional; it’s a must if they want to keep their economic competitiveness. As they strive for global positioning, clear and compelling messaging is crucial. But the real impact comes through strategic City Branding, which captures and communicates a city’s value proposition in a way that resonates emotionally, visually and meaningfully. Whether it’s showcasing their strength in the events industry, tech, or another sector, City Branding helps attract the talent and investment cities need to thrive.
While tourism has traditionally been the main driver of City Branding, promoting a city’s offerings to potential visitors, we are now seeing more cities use this powerful tool to stand out in the growing Smart Cities global landscape. Cities like Seoul, Helsinki, Tokyo or Amsterdam are leading the charge, positioning themselves as global innovation hubs and top destinations for investment.
8 | Cities will continue leveraging AI to manage themselves more efficiently, but they can no longer ignore its environmental impact
Artificial intelligence has rapidly become a hot topic, offering powerful tools that have quickly integrated into everyday life, like ChatGPT. In cities, AI has already proven its value by improving waste and energy management—from reducing building heating needs to predicting extreme weather events. However, as we recognize its potential, we’re also becoming more aware of the far-reaching impacts AI can have on labor, safety, and human rights—issues that city governments cannot afford to ignore.
But there’s another growing concern: the environmental cost of AI. Training a single large language model can generate as much CO2 as 125 round-trip flights between New York and Beijing, and this impact is escalating rapidly. The computational power needed to fuel AI’s growth is doubling roughly every 100 days. In this context, the booming data center industry is exploring energy solutions that could pose even greater environmental risks, including the possibility of incorporating nuclear reactors to power these centers.
Yes, cities must continue harnessing AI to deliver better services and manage resources more efficiently – because AI holds great promise for these goals. However, cities must also demand greater transparency regarding AI’s environmental impact—particularly in terms of energy consumption and origin and water usage. If technology is meant to serve people and cities, it must also serve the planet.
9 | Govtech will continue transforming governance, making cities more transparent, efficient, and citizen-centric
Imagine a city where accessing public services is seamless, data flows openly to build trust, and citizens actively shape policies through digital platforms. GovTech makes this vision a reality—and will continue to do so in the coming year. How? By integrating cutting-edge technologies like AI, blockchain, and IoT with public administration to streamline bureaucracy and empower communities.
It is to be expected that transparency will take center stage, with open data systems enabling citizens to monitor budgets and decisions, thereby holding governments accountable. Meanwhile, automation and predictive tools will drive greater efficiency—whether it’s AI optimizing traffic or smart algorithms managing city resources. At its core, GovTech puts people first, creating responsive systems that adapt to urban challenges while amplifying citizen voices.
This shift is not just technological; it’s transformative. By embracing GovTech, cities unlock their potential, fostering trust, collaboration, and resilience for a smarter, more equitable future.
10 | Financing urban transformations will thrive on disruptive, creative partnerships that break the mold
Last but not least, how will we finance the transformations needed to tackle the challenges cities will face in 2025? Building more sustainable, livable, and economically dynamic urban environments will depend on collaboration, innovation and inclusivity. Urban transformation is about creating spaces where these elements can thrive together, and at the core of this effort lies the idea of collective action—where governments, the private sector, and communities unite to address urban challenges and improve the quality of life for all. As timeless as this concept may seem, it remains the only way forward.
Public-private partnerships and international cooperation will be essential for funding critical infrastructure and large-scale digital solutions, while community engagement and empowerment will ensure these initiatives meet real needs, making them more inclusive and impactful. By aligning vision with action, mobilizing resources, and empowering citizens, cities can create resilient, equitable environments that attract talent, foster growth, and ultimately become better places to live.
And isn’t that exactly what we all want cities to be?
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About the authors
Mons Badia is an expert in eco-innovation, sustainable and resilient urban development and creative and cross-cutting urban solutions. She has been working at Anteverti since 2017, where she is a senior specialist of the Smart City Expo World Congress team and content coordinator for Tomorrow.city. She has also developed smart city and smart region strategies as a consultant.
Mons serves as the President of the College of Environmental Scientists of Catalonia, and has previous professional experience working in the United Nations Global Compact, in the Norwegian University of Science and Technology and in the Universitat de Barcelona, as well as in the consulting firm Inèdit.
Mons Badia has a degree in Environmental Sciences and Fine Arts (Universitat de Barcelona), and is currently studying a Master's Degree in Philosophy for Contemporary Challenges (Universitat Oberta de Catalunya).
Valeria Andrade is a multidisciplinary expert with 8 years of background helping organizations identify the opportunities shaping the cities of the future, managing projects, and organizing international corporate events. Since 2022, Valeria has worked at Anteverti as a senior congress specialist for the Smart City Expo World Congress, and provides support for other events related to urban issues, such as Barcelona ReAct.
Previously, Valeria worked at the association Barcelona Global, where she gained experience in projects focused on mobility, affordable housing, education, public-private partnerships, tourism, and talent attraction. She holds a degree in Political Science with a specialization in international relations, geopolitics, and global governance.
Clàudia Gomis is an expert in civil society, conflict, migration, and global development with international experience in project planning and implementation, research, communication, and media relations. Since 2023, she works at Anteverti as a congress specialist for the Smart City Expo World Congress.
Previously, Clàudia worked in Washington for the UN and the North American Representation of the Central Tibetan Administration, and as a digital communications manager at the European Institute of the Mediterranean, where she specialized in event planning and EU-funded project implementation. She holds a degree in International Relations, a master's in Violence, Conflict, and Development from SOAS – University of London, and additional training in human security and European studies.
