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Redeveloping Derelict and Underused Historic City Areas: Evidence from a Survey of Real Estate Developers

Author

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  • Rosato, Paolo
  • Alberini, Anna
  • Zanatta, Valentina
  • Breil, Margaretha
Abstract
Infill redevelopment—the transformation of previously used urban sites—is generally regarded as an important way to attain environmental and urban sustainability goals. At many locales, however, such urban renewal, community development, and tax revenue goals must be reconciled with historic preservation objectives. Are economic incentives and regulatory relief useful tools for encouraging reuse of abandoned or underutilized urban sites with historic buildings? Answering this question is of key importance for many European cities and for older US cities, and has important implications in terms of urban sustainability and “smart growth” initiatives. We use conjoint choice experiments to explore the relative importance of economic incentives, regulatory relief, land use and property regime offerings at underutilized historical sites in Venice, Italy. We survey real estate developers and investors, and ask them to choose between pairs of hypothetical projects in three Venice locations, as well as between one of these projects and the alternative to do a development project elsewhere. Statistical models of the responses to these choice questions indicate that respondents are sensitive to the price of acquiring the land (and hence to any policies that influence prices), and especially sensitive to the property regime that would be granted to developers and investors and to the allowable land use. Contrary to expectations, our respondents were insensitive to tightening or relaxing the stringency of building conservation restrictions. Our findings sound a common theme with Howland (2004), who warns that redevelopment of previously used sites in Baltimore is impaired by obsolete land uses, zoning and infrastructure (but not by suspected or actual contamination). We conclude that the City should focus on offering land uses and property regimes that are more in tune with developer demand.

Suggested Citation

  • Rosato, Paolo & Alberini, Anna & Zanatta, Valentina & Breil, Margaretha, 2008. "Redeveloping Derelict and Underused Historic City Areas: Evidence from a Survey of Real Estate Developers," Sustainability Indicators and Environmental Valuation Working Papers 42900, Fondazione Eni Enrico Mattei (FEEM).
    • Handle: RePEc:ags:feemsi:42900
    DOI: 10.22004/ag.econ.42900
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    Cited by:

    1. Vincenzo Del Giudice & Pierfrancesco De Paola & Torrieri Francesca & Peter J. Nijkamp & Aviad Shapira, 2019. "Real Estate Investment Choices and Decision Support Systems," Sustainability, MDPI, vol. 11(11), pages 1-18, June.
    2. Ahmad, Naveed & Zhu, Yuming & Ullah, Zia & Iqbal, Muzaffar & Hussain, Kramat & Ahmed, Rahil Irfan, 2021. "Sustainable solutions to facilitate brownfield redevelopment projects in emerging countries – Pakistani scenario," Land Use Policy, Elsevier, vol. 109(C).
    3. Marco Locurcio & Pierluigi Morano & Francesco Tajani & Felicia Di Liddo, 2020. "An Innovative GIS-Based Territorial Information Tool for the Evaluation of Corporate Properties: An Application to the Italian Context," Sustainability, MDPI, vol. 12(14), pages 1-29, July.
    4. Raul Berto & Carlo Antonio Stival & Paolo Rosato, 2020. "An Integrated Procedure for Ex-Ante Evaluations of Refurbishment Costs in Healthcare Facilities," Sustainability, MDPI, vol. 12(18), pages 1-29, September.
    5. Del Giudice, V. & De Paola, P. & Torrieri, F. & Pagliari, F., 2009. "A decision support system for real estate investment choice," Serie Research Memoranda 0010, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
    6. Carlo Antonio Stival & Raul Berto & Pierluigi Morano & Paolo Rosato, 2020. "Reuse of Vernacular Architecture in Minor Alpine Settlements: A Multi-Attribute Model for Sustainability Appraisal," Sustainability, MDPI, vol. 12(16), pages 1-27, August.
    7. Durán, Roi & Farizo, Begoña A. & Vázquez, María Xosé, 2015. "Conservation of maritime cultural heritage: A discrete choice experiment in a European Atlantic Region," Marine Policy, Elsevier, vol. 51(C), pages 356-365.

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    More about this item

    JEL classification:

    • Z1 - Other Special Topics - - Cultural Economics
    • R52 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Land Use and Other Regulations

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