International property marketdriven regeneration: A challenge to sustainable urban development?

Abstract

In Europe, urban regeneration still represents the principal mode in which urban transformation and development happen. The sustainable urban development (SUD) paradigm is based on the holistic concept of sustainability, stemming from the three pillars of environmental, social and economic sustainability. The complexity and multitude of factors affecting contemporary cities, however, challenges the adequacy of this paradigm with respect to the raising issues of identity and place ownership in a globalised world. Where significant international capitals flows become drivers for urban regeneration, it can be difficult to assess whether or not urban regeneration is really yet sustainable. Some key areas of European cities might be influenced by international property developers and management companies, with a potential impact on the decision-making process at local and even national level. Could selling the most valuable estate investments to foreign investors influence the sense of ownership of local communities? Could it undermine urban democracy? After having explored the above-mentioned issues through the literature, the paper proceeds towards its discussion through a concrete example. In particular, insights are drawn from the case study of Salford, a growing city in the heart of the ‘Northern Powerhouse’ UK city region. The paper finally suggests that: 1) the socio-economic impact of urban regeneration cannot be restricted to the mere capacity of the mechanism to rebalance inequalities, but it has to keep in account the wider investment process behind the financial input in itself; 2) a comprehensive assessment framework for sustainable urban regeneration should take into account the interconnections between local economic and international financial flows, estimating how the investment structure influences the long-term socio-economic sustainability of the investment; and 3) a variety of instruments and tools, supporting the non-profit and public actors’ participation, might help to rebalance an excess in speculative promotion.