The logical basis is that reduced cost of energy will allow creation of vertical farms and AI will lead to new revelations in efficacy of crop-farming which will create surplus food for everyone.

Despite that, you can't increase "efficacy" of Art Nouveau building in center of old city. It was there for hundreds of years and it will stay there for hundreds. There is no way to magically create "more land" in those areas, thus prime real estate will appreciate more than anything else.