Better cities, better climate – better returns on investment?


​Grosvenor has contributed to new research which shows that well-designed, compact cities are better for investors as well as citizens and the environment

Grosvenor has contributed to new research which shows that well-designed, compact cities are better for investors as well as citizens and the environment.

The report is published today by the Urban Land Institute (ULI) and the Coalition for Urban Transitions, supported by a consortium of leading global real estate investors and managers with over $300 billion in Assets.

Entitled Supporting Smart Urban Development: Successful investing in density, the report finds that cities with "good density"—dense development that is thoughtfully designed to promote a high quality of life—may be more resilient and prosperous in the long term. According to the report, these cities are more likely to provide higher risk-adjusted real estate investment returns than cities without "good density". It marks the first-ever study attempting to quantify the impact of quality of place on real estate investment returns.

Simon Chinn, Senior Research Analyst at Grosvenor was on the steering committee for the project and commented: "The findings from the report highlight that investor attitudes to measuring density need to change. Density encompasses more than just the number of people living or working within a defined area. It has to account for key characteristics of urban form such as clustering patterns, mixed-use planning, amenity offer, and transport infrastructure, which collectively play a role in creating the right kind of density for cities."

The report is in line with Grosvenor's Living Cities philosophy and how we aim to have a positive impact on the communities, neighbourhoods and cities where we invest, develop and manage property. We strive to do this through good urban practices such as building at efficient density, creating functional, mixed-use developments, with walkable streets, ensuring there is sufficient green space and high quality public realm. Ultimately by implementing these principles in our developments we aim to create a lasting legacy in the places in which we operate.

The full report is available for download here: http://on.uli.org/oMTj30kvLYm

If you have any further questions or wish to discuss the findings of the research, please do not hesitate to contact Simon Chinn (simon.chinn@grosvenor.com)

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