Highly Valued, Hard to Value: Towards an integrated measurement of real estate development
New research by Trowers & Hamlins’ reveals need for “placemaking valuation” in real estate.
Social, cultural and environmental factors should be measured alongside financial outcomes to determine the success of developments, finds a new report backed by industry and government.
A new property value measurement tool has been proposed by international law firm Trowers & Hamlins. This is the result of collaborative research undertaken with Oxford Brookes University’s School of the Built Environment, including a national market poll of UK residents and a roundtable discussion and questionnaire with industry leaders.
Trowers & Hamlins’ research proposes a wider assessment of value, beyond financial measurement, in order to deliver better – and ultimately more financially successful and sustainable – developments. Their report was launched today at MIPIM, the world’s leading international property conference in Cannes, France, and is supported by central government through UKTI’s Regeneration Investment Organisation, as well as industry stakeholders.
Entitled Highly Valued, Hard to Value: Towards an integrated measurement of real estate development, Trowers & Hamlins’ research provides both the public and private sectors with a blueprint to development and redevelopment that is not only financially beneficial, but considers a range of factors including functional, social, cultural and environmental value to increase the positive impact of development on people and places. It demonstrates that investors, developers and local authorities do not need to compromise their bottom line in order to make a better built future.
Key findings from the research include:
- The public is hungry for better places: A national market poll of 2,000 UK residents revealed that, when looking to own or rent a home, individuals’ priorities beyond pure affordability are an area's reputation, security and good design;
- The industry desires long-term success: A roundtable debate with leading industry professionals showed support for a metric that would guide them to create developments that are financially and socially prosperous;
- A broader definition of value will lead to long-term financial success: Case studies like Argent’s redevelopment of King's Cross and Liverpool One shopping centre demonstrate that long-term vision pays off; and
- A more integrated measurement of value in real estate will facilitate and support international investment through increased knowledge of what makes developments successful.