City Quarters an Asset Class of the Future
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CITY QUARTERS AN ASSET CLASS OF THE FUTURE Assessing the modern city quarter landscape in Germany CORESTATE and bulwiengesa have therefore teamed up to take a systematic look at Germany's city quarter universe in this comprehensive paper and standard reference work. This is the first in a series of publications on the subject of city quarters and will provide the WORD strategic foundation for subsequent works. We FORE are creating a reliable list of modern city quarters in Germany with a focus on the recent past and City quarters play an extremely important role in all projects currently under development or in the planning stages. On this basis, we will define modern urban planning and are attracting more THE BASIC CONCEPT and more interest from the real estate industry. sub-types of city quarters and discuss their various characteristics and functions, as well as OF THE CITY QUARTER City quarters and City quarters are not a new invention. In fact, their impact on the surroundings. COVID-19 they have always been an element of sustainable CITY QUARTERS urban development. For decades, however, We are delighted to have this opportunity to the prevailing conceptual models in urban share our thoughts with you and hope to pique THE FUTURE OF development promoted car-friendly, strictly your interest in the city quarter asset class. URBAN DEVELOPMENT zoned and low-density cities. The resulting separation of the individual types of use stands Happy reading! in stark contrast to the idea of a city quarter. THE DEFINITION CITY QUARTER Megatrends From a planning point of view, city quarters are desirable for a number of reasons. They round off QUARTERS the compact city model, give new life to brown- field sites and boost efforts to achieve greater OF THE PAST climate efficiency, to name just a few examples. London Great At the same time, city quarters are popular among Estates their users and inhabitants, as they combine an integrated approach to urban design with HOW MANY CITY meeting demand for housing and commercial QUARTERS ARE THERE space. City quarters also reflect the spirit of our IN GERMANY? era and go hand in hand with many megatrends Mark Holz Felix Embacher of the 21st century. CORESTATE Capital Group bulwiengesa Group Head of Research Head of Master Planning and Conversion Projects CONCLUSION The Asset Class of the Future – CORESTATE Capital Group | bulwiengesa 4 The basic concept of the city quarter THE BASIC CONCEPT 1OF THE CITY QUARTER The table below shows the characteristics of city quarters according to various definitions. DEFINTITION CRITERIA l Definable inner-city area l Good connection to city overall l Characterised by mix of uses l Living space within walking The term “quarter” or city quarter is used in many distance l High density of building ways. There is no one systematic definition l Strong and positive self-identity FELDMANN 6 l Robust urban structure that provides a differentiation by type. The and outside perception l Unique appearance term, which comes from French or Latin, was l Balanced social structure of users l Intact local supply infrastructure originally used todenote part of an army camp. In literature, different approaches can be found l High density of interaction among Today’s use of the word was influenced by the for developing a definition of what a city quarter l Focal point for the public users literature on urban and sociological issues in is. The focus of the definitions is on quantifiable the 1960s1. The German term Quartier was used parameters, such as the number of residential l Built after 1990 l Includes residential function as a unit of space for examining sociological units, or on qualitative factors associated with BBSR7 l More than 500 dwellings, l Planned using a homogeneous processes in the urban environment and is social life. l 1,000 residents and/or 10 ha urban design concept now generally applied to mixed-use or urban 2 development projects. The directly related term SCHNUR , for example, defines the quarter l External and internal activities l Central area not clearly defined Quartiersentwicklung (“quarter development”, primarily in terms of its social functions for its SCHNUR8 l Socially constructed space l Everyday living environments roughly equivalent to “urban development”) users. By contrast, the BBSR3 completely ignores described the proactive upgrading of socially these aspects in its criteria for identifying city deprived urban areas through urban development quarters and introduces a specific minimum policies based on a cooperative, participative size, along with an age limit. Furthermore, it and integrative approach. Nowadays, the term requires the inclusion of residential use and the Quartiersentwicklung is used to signify not only existence of a uniform urban design concept. The the development of socially deprived areas, BBSR4 does, however, acknowledge the social but also development on former industrial, component of the quarter in other publications. 1 Feldmann, Philipp. Die strategische Entwicklung neuer City Quartere. In: Schriften zur Immobilienökonomie Band 53. 2009 infrastructure, military and greenfield land. 2 Schnur, Olaf. Quartiersforschung. Zwischen Theorie und Praxis. 2008, S. 40 Moreover, it is synonymous with the development FELDMANN5 lists both material and social 3 BBSR Bundesinstitut für Bau-, Stadt- und Raumforschung. Neue City Quartere. 2012 of an area of a city, or major development projects characteristics, albeit with the result that there is 4 BBSR Bundesinstitut für Bau-, Stadt- und Raumforschung. Ziele nachhaltiger City Quartersentwicklung. 2013 in general. no specifically quantitative classification. 5 Feldmann, Philipp. Die strategische Entwicklung neuer City Quartere. In: Schriften zur Immobilienökonomie Band 53. 2009 6 Feldmann, Philipp. Die strategische Entwicklung neuer City Quartere. In: Schriften zur Immobilienökonomie Band 53. 2009 7 BBSR Bundesinstitut für Bau-, Stadt- und Raumforschung. Neue City Quartere. 2012, S. 3 The Asset Class of the Future – CORESTATE Capital Group | bulwiengesa 8 Schnur, Olaf. Quartiersforschung. Zwischen Theorie und Praxis. 2008 6 The basic concept of the city quarter THE ESSENCE OF A CITY QUARTER IS CREATED BY THE MIXED USES, WHICH – AT LEAST IN THEORY – GIVES THE QUARTER A DEGREE OF To categorise city quarters for the purposes of INDEPENDENCE WITHIN this study, it is necessary to determine typological features based on the broad definitions cited. THE CITY AND SERVES TO SATISFY A RANGE OF To this end, account is taken of the material, USER NEEDS.10 social and economic aspects of the quarter while At the social and economic levels, a quarter examining various typological forms. is characterised by the type and composition of its population, the diversity and distribution In addition to the co-existence of the At the material level, the quarter is characterised of uses and services, and the individuality and uses, synergies should also arise by features that include location, size and density, independence of the quarter within the relevant between them to create added value as well as structural design, the ratio of buildings city. The city quarter functions as a sociotope9 forallstakeholdersinthequarter.Other to open spaces, the street layout and public with a balanced social structure. It is a city on a urban structures – such as purely spaces. The quarter must be distinguished from small scale. residential neighbourhoods, commercial individual property; it represents diverse individual and business centres, or hypermarkets buildings that appear as a unified concept and How the residents of a quarter perceive the and retail parks – represent the extremes exist within an urban design context. In the case atmosphere there has a direct influence on the of monofunctional use in clear contrast of quarter development, urban visual accents are quality of life. Still, its image vis-à-vis outsiders totheideaofthecityquarter. introduced through the overarching design and also has an influence on identity within the planning concepts for the area concerned. quarter. The Asset Class of the Future – CORESTATE Capital Group | bulwiengesa 9 Strohmeier, Klaus Peter. Quartier und soziale Netzwerke: Grundlagen einer sozialen Ökologie der Familie. 1983. 10 Feldmann, Philipp. Die strategische Entwicklung neuer City Quartere. In: Schriften zur Immobilienökonomie Band 53. 2009 8 The basic concept of the city quarter PARIS MAYOR ANNE HILDAGO WANTS TO The mix of uses in a city quarter generally CREATE A ’15-MINUTE CITY‘ consists of the following main types of use: IN WHICH ALL NEEDS CAN Residential BE CATERED FOR Office WITHIN A 15-MINUTE Retail WALK.CITYQUARTERS, HOWEVER, AIM TO CREATE Residential use is a key, essential element in The main types of use are supplemented and 11 the development of inner-city quarters. It goes complemented by additional forms which can be A’5-MINUTEQUARTER‘. beyond satisfying basic needs and serves as a grouped under the following headings: means of self-expression and presentation to the outside world. This is also where successful Social infrastructure quarter development creates a feeling of identity Transport infrastructure and promotes a positive sense of belonging. Cultural amenities New housing concepts such as micro-living Leisure and recreation and co-living can complement the traditional residential use in the quarter and, in conjunction Social infrastructure in its broadest sense includes with other types of use, generate added value. facilities for health care, social services and education. Concert halls, museums, cinemas and Offices – the production sites of companies theatres are all examples of cultural amenities, in the services and IT sectors – also play a which provide benefits to the residents of the city significant part in the development of city as a whole beyond the boundaries of the quarter quarters and provide places of work for residents itself. of the quarter or city. Offices account for far less construction volume per user compared to Transport infrastructure is an important element residential buildings.