Reframing Urban Land Use and Value Through the Digital Economy: Review of Disrupted Activities, Behaviours, and Mobility

1. Introduction

The advent of the digital economy has brought about significant changes in how people live, work, and interact within urban environments. Traditional urban activities, such as retail, commerce, and recreation, are increasingly being augmented or replaced by digital alternatives [1]. This shift is influencing human behaviour, leading to new patterns of consumption, communication, and social interaction [2,3,4]. Simultaneously, digital technologies are transforming mobility, with the rise of shared mobility platforms, electric vehicles, and autonomous transportation systems [5,6]. These changes collectively impact land use patterns and, consequently, land values within cities [7].

The conventional understanding of land use and land value is predicated on physical proximity and accessibility to economic opportunities, amenities, and transportation infrastructure [8,9]. Nevertheless, the digital economy challenges these assumptions by reducing the importance of physical location for certain activities and creating new forms of value that are not directly tied to traditional land uses [1,10,11]. For instance, the rise of remote work has decoupled employment from physical workplaces, potentially leading to shifts in residential preferences and demand for office spaces [12]. Similarly, the growth of e-commerce has altered retail patterns, impacting the demand for brick-and-mortar stores and transforming commercial districts [13,14].

Understanding these transformations is essential for urban planners, policymakers, and real estate professionals. Traditional land use regulations and valuation models may no longer accurately reflect the realities of the digital economy, leading to inefficiencies, inequities, and unsustainable development patterns [15,16]. This study will address the following key research questions: (a) How does the digital economy disrupt traditional urban activities, and what are the implications for land use patterns? (b) How does the digital economy influence human behaviour in urban environments, and how do these behavioural shifts affect land demand and value? (c) How does the digital economy transform urban mobility through the emergence of new transportation technologies and platforms, and what are the consequences for land use, accessibility, and urban form? By examining the disruptions caused by the digital economy on urban activities, behaviour, and mobility, this research aims to provide insights that can inform more effective land use policies, valuation methodologies, and urban development strategies.

2. Literature Background

2.1. The Digital Economy and Urban Activities

The digital economy has significantly altered traditional urban activities, such as retail, commerce, and recreation [17,18,19]. The rise of e-commerce has disrupted traditional retail patterns, leading to a decline in brick-and-mortar stores and the emergence of new forms of online shopping [13]. This transformation has implications for the demand for commercial spaces and the vitality of traditional commercial districts. Similarly, the digital economy has facilitated the growth of online services, such as online education, telemedicine, and remote entertainment, which have reduced the need for physical spaces dedicated to these activities [20,21,22]. The shift towards a digital economy has also led to the emergence of new types of urban activities, such as co-working spaces, maker spaces, and innovation hubs [23,24]. These spaces cater to the needs of digital workers, entrepreneurs, and startups, fostering collaboration, creativity, and innovation. They often require different types of land use and infrastructure compared to traditional office spaces, necessitating a re-evaluation of zoning regulations and development policies.

2.2. Digital Economy and Human Behaviour

The digital economy has profoundly influenced human behaviour in urban environments, including consumption patterns, social interactions, and mobility choices [25,26,27]. The proliferation of smartphones, social media, and online platforms has transformed how people consume goods and services, communicate with each other, and access information [28]. These behavioural shifts have implications for land demand and value. For instance, the rise of online shopping has altered consumer behaviour, leading to a greater emphasis on convenience, personalisation, and price transparency [29]. This has reduced the demand for traditional retail spaces and increased the demand for logistics and distribution centres [30,31]. Similarly, the growth of social media has transformed social interactions, leading to a greater emphasis on online communities and virtual experiences [32]. This has implications for the demand for public spaces and community facilities.

2.3. Digital Economy and Urban Mobility

The digital economy has revolutionised urban mobility through the emergence of new transportation technologies and platforms. Shared mobility platforms, such as Uber and Lyft, have transformed how people move around cities, providing convenient and affordable transportation options [33]. Electric vehicles are gaining popularity, reducing reliance on fossil fuels and promoting sustainable transportation [34]. Autonomous vehicles hold the promise of further transforming urban mobility, potentially leading to safer, more efficient, and more accessible transportation systems [35]. These transformations have significant consequences for land use, accessibility, and urban form. The rise of shared mobility platforms may reduce the need for private car ownership, leading to a decrease in demand for parking spaces and a shift towards more pedestrian-friendly and bike-friendly urban environments [36,37,38]. The adoption of electric vehicles may require the development of new charging infrastructure, which could impact land use patterns and energy consumption [39,40]. The deployment of autonomous vehicles may lead to more efficient use of road space, potentially reducing traffic congestion and improving accessibility [41].

3. Research Design

3.1. Methodological Approach

This study employs a systematic literature review (SLR) methodology to investigate how the digital economy disrupts traditional urban activities, behaviour, and mobility patterns, and their subsequent impacts on land use and land value. The SLR follows a rigorous three-stage methodological approach adapted from [42], ensuring comprehensive coverage and systematic analysis of relevant literature. The review was guided by three key research questions: (a) How does the digital economy disrupt traditional urban activities, and what are the implications for land use patterns? (b) How does the digital economy influence human behaviour in urban environments, and how do these behavioural shifts affect land demand and value? (c) How does the digital economy transform urban mobility through the emergence of new transportation technologies and platforms, and what are the consequences for land use, accessibility, and urban form?

3.2. Literature Search Strategy

The first stage (Stage 1) is to define the literature search strategy. To ensure comprehensive coverage of relevant literature, a structured search strategy was developed using Boolean operators to combine key terms related to each research question. Three distinct search queries were formulated: ("urban activities" OR "urban land use" OR "urban functions") AND ("digital transformation" OR "digital economy") for addressing urban activities; ("urban behaviour" OR "consumer behaviour" OR "lifestyle changes") AND ("digital transformation" OR "digital economy") for examining behavioural aspects; and ("urban mobility" OR "travel behaviour" OR "commuting patterns") AND ("digital transformation" OR "technological disruption") for investigating mobility transformations. These search queries were applied to the title, abstract, and keywords fields across four major academic databases. Scopus was selected for its comprehensive coverage of peer-reviewed literature across multiple disciplines, particularly strong in urban studies, geography, and technology research. Web of Science was utilised for its rigorous selection criteria and citation indexing, ensuring high-quality scholarly publications. Google Scholar was included to capture a broader range of academic literature, including recent publications and interdisciplinary research that might not yet be indexed in traditional databases. ProQuest was employed to access additional academic journals and ensure coverage of publications from diverse geographic regions and emerging research areas.

The search was restricted to articles published between 2019 and 2024 to capture recent developments in the rapidly evolving digital economy. Additional filters were applied to ensure quality and relevance, including limiting results to peer-reviewed journal articles, research papers only (excluding reviews, editorials, and conference papers), English language publications, and full open-access articles. The initial search yielded 512 articles across all databases, providing a substantial corpus for systematic review.

In Stage 2, The selection process involved a multi-stage screening approach with clearly defined inclusion and exclusion criteria applied at primary and secondary levels. Primary inclusion criteria specified peer-reviewed research articles with full-text availability online and articles published in academic journals. Primary exclusion criteria eliminated duplicate records across databases, books and book chapters, industry reports, and government reports and policy documents. Application of primary criteria reduced the initial 512 articles to 244 unique research articles.

Secondary screening criteria were then applied in two phases. The inclusion criteria at this stage required direct relevance to digital transformation impacts on urban activities, behaviour, or mobility; clear alignment with one or more research questions; demonstrable methodological rigour; and provision of empirical evidence or robust theoretical contributions. Articles were excluded if they had only tangential relationships to digital transformation in urban contexts, lacked clear connection to urban activities, behaviour, or mobility, showed insufficient relevance to the research aims, or were purely descriptive studies without analytical depth. The first phase involved screening titles, abstracts, and keywords of the 244 articles, resulting in 77 articles deemed potentially relevant. The second phase consisted of full-text review of these 77 articles against secondary criteria, yielding a final sample of 66 articles for in-depth analysis. Figure 1 presents a summary of the methodology described above, including the Boolean search terms applied.

3.3. Data Analysis

In Stage 3, The analysis employed a systematic categorisation method adapted from [43], utilising a four-step qualitative approach to identify and organise key themes aligned with the research questions. These themes were then re-evaluated, refined, and cross-referenced with other literature and review studies. The criteria for the formation of the themes are presented in Table 1.

The analysis utilised descriptive qualitative techniques rather than statistical methods. Pattern matching was employed to identify common themes, trends, and differences across the selected literature using systematic eye-balling techniques deemed sufficient for assessing and organising the data. Explanation building was used to develop coherent narratives connecting identified patterns to the theoretical framework and research questions. This analytical process resulted in the distribution of the 66 selected articles across three primary thematic categories: How Digital Economy Disrupts Urban Activities (n = 22), How Digital Economy Disrupts Urban Behaviour (n = 22), and How Digital Economy Disrupts Urban Mobility (n = 22). The final stage involved synthesising findings from the analysed articles into a comprehensive narrative that addresses each research question, presenting key findings within each thematic category, identifying cross-cutting themes and interconnections, and highlighting implications for land use patterns and land values.

4. Analysis and Results

4.1. General Observation

The increasing number of publications focusing on the digital economy's impact on urban environments demonstrates a growing interest among researchers. The number of articles published reflects this trend, with two articles in 2017, four in 2018, four in 2019, 12 in 2020, 12 in 2021, 10 in 2022, and 22 between 2023 and 2024. A significant number of leading authors are affiliated with academic institutions in Europe (n = 32) and Asia (n = 20), reflecting the widespread adoption of the digital economy in these regions. Interest is also evident in Australia (n = 5), South America (n = 4), and the Middle East (n = 4), with fewer studies originating from North America (n = 1). A graph illustrating the growth of literature on the impact of the digital economy in relation to publication year and world region is available.

The extensive and multifaceted impact of the digital economy on urban environments is reflected in the diverse range of journals and proceedings from which articles were selected for this research review. Approximately half of the articles are distributed across journals and proceedings focusing on Geography, Planning and Development (n = 8), Economics (n = 8), Business and Finance (n = 8), and Social Science (n = 8). The remaining half are primarily found in publications centred on Urban Studies (n = 6), Transport (n = 5), Environmental Science (n = 5), Engineering and Technology (n = 5), and Tourism (n = 5). A smaller proportion of papers originate from other various fields.

Regarding the research method, literature reviews represent the most prevalent type of paper addressing the impact of the digital economy (n = 24). The academic discourse on the digital economy and its effects on urban areas is often scattered across various disciplines, including management, information systems, economics, and urban planning. A literature review can bridge these disciplinary divides by synthesising diverse perspectives and bringing together insights from different fields [44]. While a literature review provides a broad overview of a topic, it may lack the depth and detail necessary to fully understand the complexities of the digital economy and its urban impacts. They are not always consistent, and different studies may reach conflicting conclusions [45].

An additional common research method employed is quantitative analysis, with 17 papers utilising approaches such as surveys, questionnaires, panel data, and regression models. Quantitative analysis is adept at identifying broad trends and patterns within large datasets. By analysing survey responses from a diverse sample of urban residents, researchers can uncover common behaviours related to digital platforms, such as e-commerce adoption, use of ride-sharing services, or engagement in online communities [46]. Quantitative methods, particularly surveys and panel data, can be scaled to cover large populations and diverse geographic areas, enhancing the generalisability of research findings. However, Quantitative analysis often lacks the depth and contextual understanding that qualitative methods can provide. Surveys and questionnaires typically focus on specific variables, neglecting the broader social, cultural, and historical context that shapes urban activities and behaviours [47].

Conversely, a dozen of papers adopted a qualitative approach, incorporating interviews, ethnographic studies, comparative analyses, and workshops. Qualitative methods prioritise the exploration of subjective experiences and meanings. They allow researchers to understand how urban residents perceive, interpret, and make sense of the changes brought about by the digital economy. even though Qualitative research is inherently subjective, and researcher bias can influence the data collection, analysis, and interpretation processes.

Another methodological approach used are case study (n = 10) and Mixed Method (n = 4). The case study approach is flexible and adaptable, allowing researchers to adjust their research questions and methods as new information emerges. This is particularly useful in the rapidly evolving digital economy, where new technologies and business models are constantly emerging. While case studies are often used for exploratory research, they can also contribute to theory building by generating new concepts, frameworks, and hypotheses.

4.2. How Digital Economy Disrupts Urban Activities

This section discusses some digital economy impacts on urban activities disruption. Based on the reviewed literature the following outcomes were identified: (a) spatial segregation; (b) privatisation of public space; (c) corporatisation of urban governance; (d) Revaluation of urban centres and suburban areas, and (e) tourism disruption (Table 2).

First, digital economies have shifted urban governance towards a smart city model, integrating high-tech investments and knowledge-intensive industries [48]. Municipalities are now active participants in shaping digital infrastructure, forming public-private partnerships and data-driven policies. This involves designing cities to support digital entrepreneurship through "smart precincts" and innovation hubs, leading to specialised districts catering to knowledge economies.

The increasing importance of digital connectivity and data accessibility is shifting the economic value of land [49]. High-tech districts and smart city hubs are experiencing land value appreciation, while traditional commercial zones are becoming less relevant [50]. This dynamic leads to increased value in digitally connected districts, potentially causing gentrification and displacement. As an example, smart city projects can attract private investment, which increases real estate prices and displaces low-income residents. Furthermore, Algorithmic Urban Exclusion, Digital mapping and AI-driven urban services often prioritise privileged groups while excluding marginalised communities [51]. For example, Routing algorithms in ride-hailing apps avoid low-income neighbourhoods, reinforcing spatial segregation and unequal access to services.

Secondly, Municipal governments are increasingly collaborating with tech firms, leading to the privatisation of public services and spaces, potentially catering primarily to those who can afford them [52]. This collaboration blurs the boundaries between public and private spaces, transforming public areas into commercialised zones, as seen in smart city projects that maximise data collection and monetisation. Cities are being designed with interactive urban environments, integrating technologies like AR, smart sensors, and AI-driven public services, and shifting urban services such as transport and accommodation to private digital platforms, which affects affordability [53]. This shift highlights the digital divide and socio-spatial inequality, as not all residents benefit equally from these digital transformations [50], leading to the exclusion of marginalised communities from digital economic benefits.

Third, digital urbanism is evolving from smart, data-driven city management to platform urbanism, where digital platforms increasingly mediate urban services and interactions . These platforms, exemplified by transportation services like Uber and short-term rentals like Airbnb, act as intermediaries that reshape traditional urban economies [54]. This shift can lead to cities becoming reliant on specific corporate platforms, creating issues of "lock-in" and potentially "lock-out" from alternative solutions, and influencing city governance and service delivery [52]. The rise of these platforms also fosters informalisation and deregulation, creating tensions with existing municipal policies, and potentially leading to corporate-controlled governance models where private firms dictate urban management strategies, as seen in projects where private firms experiment with urban governance models [55].

Fourth, the increasing prevalence of remote work, e-commerce, and home delivery platforms is reshaping urban landscapes by diminishing physical movement within cities [56]. This shift leads to a decline in traditional office and retail districts as digital alternatives reduce foot traffic, prompting the conversion of retail spaces and adaptation of residential areas with co-working spaces and smart home technologies [57]. While suburban and exurban areas gain value due to increased digital connectivity, allowing work from diverse locations, demand rises for logistics hubs and data centres, yet urban centres maintain their appeal due to proximity to customers, skilled workers, and innovation ecosystems [58]. Despite Industry 4.0’s ability to decentralise production, companies still cluster in knowledge-intensive urban environments.

Digital platforms are transforming urban employment patterns by reshaping labour markets, leading to both the decline of traditional jobs and the creation of new, digitally based opportunities [59]. This shift fosters informal employment, particularly in gig-based mobility services, creating a new category of workers as independent contractors and expanding flexible employment opportunities that alter commuting patterns and demand for commercial spaces [60]. The digital economy also reduces information asymmetry between enterprises and consumers through online platforms, enabling cross-regional economic transactions and making financial services more inclusive, while the reduced need for physical proximity disperses economic activities beyond traditional urban cores.

The final outcome relates to tourism disruption. Digital technologies are reshaping urban economies reliant on tourism by enhancing efficiency, reducing business costs, and offering personalised services [61]. This encourages tourism specialisation in non-traditional tourist destinations, shifting their economic focus. As digital platforms boost tourism, land values in certain urban areas may increase due to higher visitor demand. Digital storytelling and mobile apps are redefining tourist experiences at urban heritage sites [62], while the value of urban land is now based on digital enhancements and engagement metrics, with digital tools creating new interactions between residents, tourists, and city infrastructure [63]. However, areas with digital upgrades may experience increased land values, potentially displacing residents and businesses, indicating that urban land value is increasingly tied to digital infrastructure and tourism potential [64].

4.3. How Digital Economy Disrupts Urban Behaviour

This section discusses how digital economy disrupt urban behaviour. This disruption can be seen in: (a) Gig work and digital nomadism; (b) Consumption patterns; (c) From ownership to access-based consumption; (d) The power of digital engagement (Table 3).

The first disrupted urban behaviour is related to working behaviour. The digital economy is reshaping urban work and consumption patterns by diminishing reliance on centralised office districts and physical retail spaces [65]. This shift is driven by the rise of digital businesses that operate without fixed locations and the growth of remote work, digital nomadism, and flexible workspaces [66]. As businesses migrate to digital platforms, traditional retail and office spaces lose value, potentially leading to the repurposing of shopping malls and business districts into mixed-use developments or logistics hubs. This transformation leads to new job opportunities in logistics, digital marketing, and information technology, while simultaneously disrupting traditional retail employment, requiring cities to adapt their workforce and education systems to meet Industry 4.0 requirements [67,68]. The platform economy, encompassing gig work and remote jobs, further redistributes urban wealth and employment, leading to uneven economic transformations that necessitate a rethinking of labour policies and workforce training, and highlighting the need for cities to address digital inequality to ensure e-inclusion and social equity.

The second disruption affects consumption pattern. The digital economy is reshaping urban consumption patterns, with consumers increasingly favouring online and hybrid shopping experiences, which reduces foot traffic in physical retail spaces [69]. Businesses are adapting from product-centric to customer-centric models that emphasise personalised digital interactions, which alters traditional commercial zones. This retail transformation favours experience-based spaces like interactive showrooms and pop-up stores, necessitating adjustments in commercial zoning policies, while the adoption of e-wallets further reduces reliance on physical cash, impacting how people engage with urban commercial spaces [70]. Digital payment systems also support the development of smart and cashless cities, where urban spaces integrate seamless digital services, potentially leading to a redesign of urban centres that facilitates digital transactions and reduces the need for ATMs and physical banking spaces.

The shift towards digital consumption is reshaping urban spaces as traditional retail diminishes and e-commerce expands. This leads to the repurposing of vacant department stores into mixed-use developments or logistics hubs, while the growth of home delivery services increases the demand for urban logistics centres [71]. Developed urban centres experience faster digital consumption growth, potentially creating regional imbalances, and technological innovation in the digital economy impacts income distribution and urban investment [72]. Furthermore, digital commerce adoption is higher among younger and wealthier urban consumers, which may exacerbate economic polarisation between digitally connected and disconnected communities.

The third, the digital economy fosters on-demand access to services, shifting consumer behaviour toward instant and flexible consumption models. This has led to collaborative consumption, where individuals share assets like cars and homes, facilitated by digital platforms that prioritise renting, lending, and sharing over ownership, exemplified by services like Airbnb and Uber [73]. This transition reduces the demand for personal vehicle ownership and property investment, influencing urban planning by potentially repurposing parking spaces for green areas and requiring redesign of public transport access points to accommodate on-demand pick-up/drop-off zones. Furthermore, Public transportation may need to adapt to a more flexible, on-demand model rather than traditional fixed routes.

Subsequently, consumer spending habits are influenced by economic crises and conflicts, leading to increased price sensitivity and a focus on product availability, delivery efficiency, and affordability [74]. This shift is further amplified by the digital economy, where younger, tech-savvy generations like Millennials and Gen Z are more inclined to participate in the sharing economy, driven by social and environmental motivations, and enabled by the reduced barriers to access provided by digital platforms [73]. Moreover, higher technological proficiency and openness to innovation among these younger populations drive greater adoption of digital payment methods, influencing urban economic activities and potentially redesigning urban centres to facilitate digital transactions [70]. The COVID-19 pandemic has also accelerated the transition of businesses to new conditions of functioning, further solidifying the importance of digital solutions in meeting consumer demands.

The power of digital engagement is the final impact of urban behaviour disruption. Consumers are increasingly utilising self-service technologies and digital platforms, which is reshaping their engagement with businesses and altering urban spaces. This shift is evident in the rising expectation for digital interfaces in hospitality and other urban services by tourists and shoppers, which is impacting the demand for traditional service spaces [75,76]. As restaurants integrate self-service technologies, the demand for large seating areas and physical interactions may decline, potentially leading to the repurposing of commercial spaces. The rise of travel applications and online booking platforms empowers tourists to plan independently, leading to a preference for unorganised tourism and more diverse tourist routes that extend to lesser-known urban areas [77,78]. This dispersion of tourists can challenge local infrastructure, potentially leading to the repurposing of commercial spaces.

The increasing reliance on digital platforms and social networks is shifting decision-making from local interactions to global digital spaces [79]. People engage with urban environments through digital interfaces, and increasingly rely on online information and peer reviews, leading to a preference for self-guided tourism and diverse routes [77]. Metropolitan residents engage in more digital transactions and use online information sources (e.g., reviews, comparison sites) more frequently than rural residents [80]. While the gig economy allows residents to monetise assets through ride-sharing and local tours. Historic city centres experience higher rental prices and displacement of local communities due to increased short-term rental activity. leading to short-term rental booms in tourist-heavy areas. This affects housing availability and affordability for local residents. Increased demand for temporary lodging changes zoning regulations and urban planning priorities.

4.4. How Digital Economy Disrupts Urban Mobility

This section discusses what kind of urban mobility is affected by digital economy development. These disruptions are evident in: (a) commuting mobility; (b) logistic and last-mile delivery; (c) supporting 15-minute city implementation, and (d) car ownership vs on-demand mobility (Table 4).

The first, the digital economy is reshaping urban commuting patterns by shifting employment from manufacturing and construction to service-based jobs, leading to a decreased demand for industrial zones and an increased need for co-working spaces and digital hubs [81]. This shift is further amplified by the rise of remote work, which has significantly reduced daily commutes and reliance on public transport and private vehicles [82]. Consequently, suburban areas are becoming more attractive due to the reduced need for commuting, leading to a shift in housing preferences towards larger homes with workspaces and potentially driving demand for decentralised mobility solutions in previously car-dependent peripheral urban areas.

The second, the rise of online shopping is substituting physical trips, which has led to a decline in shopping-related travel and has affected public transport ridership and road congestion [83]. This shift requires updating traditional travel demand models to reflect how digital platforms influence when, where, and how people travel for shopping. As people manage social and commercial activities through digital platforms, public spaces see a decline in casual movement, while increased home deliveries have shifted urban mobility patterns, necessitated new models of urban freight distribution and potentially causing congestion with the rise of same-day delivery and e-commerce logistics hubs [84]. The increased demand for logistics and last-mile delivery hubs is also shifting land use patterns from retail-centric to warehousing, prompting cities to rezone areas for micro-fulfillment centres and distribution hubs to support rapid delivery services. With more people working remotely and using shared transport, parking lots and car-dependent infrastructure may become obsolete. Urban planners might convert underutilised parking spaces into green spaces, pedestrian-friendly zones, or mixed-use developments.

The third, as commuting decreased, people compensated with more local, non-work-related travel, leading to increased neighbourhood-level mobility and demand for high-quality public spaces. This shift supported the rise of 15-minute cities and self-sustaining, mixed-use districts where daily needs are met within short distances [85]. Enhanced by digital economies, these urban clusters promote localised living and reduce the need for cross-city travel, with mobility dominated by autonomous buses, personal mobility devices, cycling, and walking [86]. As a result, urban policies are increasingly focused on reducing car dependency, enhancing walkability, and reallocating road space for green and functional urban areas.

The final, Digital platforms are transforming travel behaviour by promoting convenience and efficiency over car ownership, with users favouring pay-per-use models enabled by app-based services [87,88]. Millennials, as tech-savvy digital natives, drive demand for flexible, technology-driven transport options like Uber and Lyft, reducing reliance on private vehicles and disrupting traditional transportation systems [89,90]. Features like voice search and AI recommendations further shape travel choices. While women often prefer these digital solutions for safety and time control, access remains unequal, with financial barriers potentially widening mobility gaps [91].

Mobility-as-a-Service (MaaS) supports compact, mixed-use urban development by reducing reliance on private cars and enhancing access to jobs and services through integrated, multimodal transport hubs [92]. These hubs connect public transit, shared mobility, and micromobility options, prompting cities to redesign infrastructure and zoning policies—such as exclusive parking for shared vehicles—to support seamless travel [93]. Cities like Zurich, Basel, Paris, and San Francisco are leading these efforts. MaaS platforms also use demand-based pricing, influencing travel behaviour and land use, while offering potential solutions for declining public transport in rural and suburban areas through shared mobility alternatives [94].

5. Findings and Discussion

This section presents and discusses the core findings of this systematic review by thematically synthesising how the digital economy disrupts three fundamental aspects of urban systems—i.e., urban activities, human behaviours, and mobility. The implications for land use and land value are examined in each theme to demonstrate how traditional spatial-economic models are being transformed in the digital age.

5.1. Disruptions to Urban Activities

The digital economy has transformed the nature and spatial organisation of urban activities, challenging conventional planning paradigms anchored in proximity, density, and centrality. Key disruptions include spatial segregation, privatisation of public space, corporatisation of urban governance, the revaluation of central and peripheral areas, and a reconfiguration of the tourism economy.

Spatial Segregation and Gentrification: Smart city developments and digital infrastructure projects often concentrate in economically privileged urban districts, contributing to spatial inequality. These developments raise land and property values, pricing out low-income populations and exacerbating residential displacement. As Praharaj [95] notes, such projects can create 'digital enclaves'—spaces of advanced connectivity and services that exclude those lacking digital access or literacy. Displacement from digital transformation is not only economic but also social and cultural. Marginalised residents are not only pushed out of gentrifying precincts but lose access to employment, social networks, and essential urban amenities [96]. These outcomes demand proactive housing and equity policies that integrate affordability protections within digital development frameworks [97].

Privatisation of Public Space: The digital economy is also altering the nature of public space. As activities such as work, retail, learning, and entertainment migrate online, physical public spaces lose foot traffic and visibility, making them vulnerable to commercial redevelopment. Digitally mediated environments—like app-based coworking spaces and private delivery hubs—transform traditional commons into controlled, pay-to-access areas [98]. Li et al [99] warn that such privatisation erodes civic identity and reduces social mixing, while Erdmann-Goldoni [100] emphasises the importance of preserving inclusive urban spaces as sites of community belonging. Aprilia [101] and Lee [102] further caution that this shift risks deepening social fragmentation, especially where digital access is uneven.

Corporatisation of Urban Governance: Platform urbanism represents a paradigm shift in how cities are governed. With tech companies playing an increasing role in managing data, infrastructure, and services, the boundaries between public and private governance are blurring. D’Amico et al. [103] show how urban planning is now often shaped by algorithmic insights produced by corporations, not municipalities. This corporatisation undermines traditional democratic accountability. Graham [104] and Ferreri & Sanyal [19] argue that platform-led governance prioritises efficiency and profit, often at the expense of public values such as equity, accessibility, and sustainability. Van Doorn [105] conceptualises platforms as new urban institutions that mediate relations between the state, market, and citizens. Without regulatory intervention, these arrangements may exacerbate power asymmetries in decision-making.

Revaluation of Urban and Suburban Areas: The digital economy is reshaping urban geography. Central business districts, once prized for proximity to workplaces, are declining in relative value due to the normalisation of remote work. Conversely, suburban areas are becoming more attractive due to affordable housing, lower congestion, and enhanced connectivity [106]. This shift is visible in the emergence of digital suburbs with smart infrastructure and home-office-friendly housing. However, these transformations require significant planning investment—particularly in transport, public services, and mixed-use zoning—to avoid digital sprawl [107,108]. The redistribution of economic activity also redefines land valuation patterns, with digitally connected areas gaining appreciation over traditional commercial zones.

Digital Tourism Disruption: Tourism economies are being reconfigured by digital platforms such as Airbnb and TripAdvisor. These technologies allow tourists to access customised, real-time experiences, reshaping demand and spatial flows within cities [109,110]. However, the commodification of neighbourhoods into tourist destinations displaces local communities and disrupts housing markets [111,112]. The resulting “touristification” drives up land prices and reduces housing availability for long-term residents. Policymakers must address these disruptions by regulating short-term rentals, supporting local culture, and balancing tourism development with residential needs.

5.2. Disruptions to Urban Behaviour

Digital technologies are transforming urban residents’ consumption, work, socialisation, and engagement behaviours—reshaping urban land demand and value in the process.

Gig Work and Digital Nomadism: The rise of gig platforms has decoupled work from fixed locations. Digital nomadism and freelance gig work are now common among younger, mobile workers [113,114]. This shift alters spatial preferences, increasing demand for flexible housing, coworking hubs, and high-speed digital connectivity across urban and suburban areas. Wulansari et al. [115] highlight how digital nomads prioritise work-life balance, while Blázquez et al. [116] note risks to labour rights and well-being. These evolving lifestyles change how people interact with cities, altering land use patterns—e.g., converting apartments into work-live studios—and impacting local labour markets and amenities.

Changing Consumption Patterns: E-commerce, digital wallets, and real-time shopping interfaces are reshaping urban consumption behaviours. Physical retail is declining while demand for warehousing, logistics, and last-mile infrastructure is surging [70,117]. As traditional retail zones become obsolete, land use must shift to accommodate new hybrid commercial spaces. Moreover, the rise of ethical and sustainable consumption is influencing the spatial economy of cities. Consumers now favour producers and retailers that support local, low-carbon, and transparent supply chains, which may impact zoning for local markets, production facilities, and green urban logistics [118,119].

Access-Based Consumption and the Sharing Economy: Ownership is giving way to access. Ride-sharing, home-sharing, and subscription-based models reduce the need for personal vehicle ownership or property investments, shifting demand from private assets to shared infrastructure [120,121]. However, the impact of sharing economies on sustainability and equity is mixed. In some cities, car-sharing aligns with environmental goals and reduces emissions. In others, short-term rentals inflate rents and displace locals. Enochsson et al. [122] call for nuanced governance strategies that distinguish between collaborative and extractive platform models.

Digital Engagement and Spatial Behaviour: Digital engagement has become a key driver of urban behaviour. Mobile apps, social networks, and digital platforms mediate how residents access services, navigate space, and participate in civic life [123]. These platforms increase efficiency and responsiveness but may also reduce spontaneous social interaction and deepen surveillance [124]. As Singh et al. [125] and Muharam et al. [126] note, digital engagement is shaped by demographics, literacy, and platform design. Cities must ensure that public spaces and services remain accessible both physically and digitally to avoid reinforcing inequalities.

5.3. Disruptions to Urban Mobility

Urban mobility is undergoing profound shifts driven by remote work, digital logistics, localised travel, and shared mobility platforms. These changes are altering land use dynamics and reshaping the spatial configuration of cities.

Suburban Attraction and Digital Gentrification: Remote work has reduced the need to live near employment hubs, prompting many to move to suburbs and rural fringes. This has led to a phenomenon termed “digital gentrification,” where digitally connected migrants raise local land values and reshape neighbourhood cultures [127,128]. These trends call for renewed suburban investment in transport, schools, and public services to support more diverse and denser populations. The creation of suburban economic hubs further decentralises cities, requiring revised land valuation frameworks that reflect digital connectivity over physical proximity [129].

Logistics and Last-Mile Delivery: The growth of e-commerce has increased demand for last-mile delivery infrastructure. Consumers expect rapid, contactless, and trackable delivery, which in turn drives up demand for urban logistics hubs, micro-fulfillment centres, and smart delivery networks [130,131]. This trend has land use implications: traditional commercial areas may need to be rezoned for warehousing, while traffic congestion and emissions from delivery vehicles necessitate environmental regulations and urban design adaptations [132].

15-Minute Cities and Localised Mobility: The digital economy facilitates the realisation of the 15-minute city model, where all essential needs are accessible within a short walk or ride. Data-driven mobility services—such as e-scooters, shared bikes, and local super apps—can enhance accessibility and reduce car dependency [133,134]. Such urban forms demand land use strategies that integrate housing, services, and mobility infrastructure. Cities must redesign zoning codes and spatial planning policies to support hyper-local, mixed-use developments that align with digital lifestyles.

On-Demand and Shared Mobility: Ride-hailing, carpooling, and micro-transit services offer flexible alternatives to car ownership. They challenge public transit systems while simultaneously filling service gaps, particularly in low-density areas [135]. These services influence land use by reducing parking requirements, altering traffic flows, and changing accessibility norms. Yet without regulation, on-demand mobility can worsen urban sprawl, encourage reliance on private services, and raise concerns around equity, privacy, and labour conditions [136,137]. Policymakers must integrate such services into public mobility ecosystems while addressing sustainability, spatial equity and digital access barriers [138,139,140].

6. Conclusion

This study provides a comprehensive synthesis of the ways in which the digital economy is reshaping the foundations of urban systems, with profound implications for land use and land value. By systematically reviewing recent academic literature, we identified key disruptions across three interconnected domains—urban activities, human behaviour, and mobility—highlighting how digital transformations are decoupling land value from traditional locational determinants such as proximity to services, employment centres, and infrastructure.

The findings demonstrate that the rise of e-commerce, remote work, platform urbanism, and digital service delivery has redefined the spatial and economic logic of cities. Urban activities are becoming increasingly detached from fixed locations, giving rise to new typologies such as innovation hubs, logistics centres, and virtual marketplaces. At the behavioural level, shifts toward gig work, digital nomadism, access-based consumption, and immersive digital engagement are reshaping consumption and settlement patterns, while also exacerbating socio-spatial inequalities. Urban mobility is undergoing a parallel transformation, with the decline of private vehicle ownership and the rise of on-demand, shared, and autonomous mobility systems, challenging existing transport infrastructure and land use frameworks.

Critically, these transformations signal the need to reconfigure urban planning, land valuation models, and regulatory frameworks. Traditional land use policies, which assume stable and spatially fixed patterns of economic activity, risk becoming obsolete in an era where virtual connectivity competes with physical accessibility. The uneven adoption of digital technologies also raises new challenges in ensuring equitable access to urban opportunities, particularly for marginalised communities.

Moving forward, urban planners and policymakers must adopt more adaptive, inclusive, and anticipatory approaches. This includes integrating digital infrastructures into land use planning, safeguarding equitable access to public goods, and revising zoning regulations to accommodate hybrid and flexible urban functions. Moreover, future research should empirically validate the theoretical frameworks presented in this review by investigating case studies across different socio-economic and geographical contexts.

In sum, the digital economy is not merely adding a new layer to urban systems—it is fundamentally restructuring the way our cities function, are governed, and are valued. A rethinking of urban land use and valuation practices is therefore essential to create resilient, just, and future-ready cities.