In the latest edition of Retail Watch, a Property EU magazine focusing on the latest real estate developments in retail, Redevco contributed to an article about the rapid urbanisation in Europe and what makes cities attractive.
With ongoing urbanisation and increased mobility, an estimated 70 million people will be setting up home in a European city in the next 30 years. That’s a huge number and as an investment manager it is relevant to understand to what cities these people will flock, and which neighbourhoods will flourish. To know this, it is important to understand what drives consumers. What is clear is that cities attract society’s diverse demographic groups who share a healthy appetite for experience, choice and good-quality living.
Mixed-used real estate investors therefore need to combine acute analysis of traditional fundamentals and increasingly relevant soft factors – all the elements that improve the quality of life – to a create a precise understanding of a specific location’s lasting attractiveness. The market is evolving so rapidly – and developments such as e-commerce and urbanisation are so complex to measure and evaluate – that only a deep and dynamic data approach will allow investors to keep up with the radical market evolution that is underway.
Understanding what the people want
People are attracted to good-quality infrastructure where their needs are met. They want to live, shop, work, socialise and thrive where they feel connected and welcome – helping to create sustainable and attractive communities. These groups of people all share the special goal of living the urban dream well. Achieving this dream is more than a chance meeting of local residents’ minds though. It takes empathy, understanding and commitment on the part of real estate managers, developers, urban planners and capital providers to create solid foundations and communities for living well in the city.
Read the full article: Retail Watch_Article April 2019