Mass Migration and Real Estate in European Cities
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Mass migration and real estate in European cities April 2017 Authors: Dr Lisa Goodson, Siân Thomas, Professor Jenny Phillimore and Professor Simon Pemberton ii | Mass migration and real estate in European cities About ULI The Urban Land Institute is a global, The extraordinary impact that ULI makes on land Drawing on the work of its members, the member-driven organization comprising more use decision making is based on its members Institute recognizes and shares best practices than 40,000 real estate and urban development sharing expertise on a variety of factors affecting in urban design and development for the professionals dedicated to advancing the the built environment, including urbanization, benefit of communities around the globe. Institute’s mission of providing leadership in demographic and population changes, new the responsible use of land and creating and economic drivers, technology advancements, ULI has been active in Europe since the early sustaining thriving communities worldwide. and environmental concerns. 1990s and today has over 3,000 members across 27 countries. The Institute has a ULI’s interdisciplinary membership represents Peer-to-peer learning is achieved through the particularly strong presence in the major all aspects of the industry, including developers, knowledge shared by members at thousands of European real estate markets of the UK, property owners, investors, architects, urban convenings each year that reinforce ULI’s Germany, France, and the Netherlands, but planners, public officials, real estate brokers, position as a global authority on land use and is also active in emerging markets such as appraisers, attorneys, engineers, financiers, real estate. In 2016 alone, more than 3,200 Turkey and Poland. and academics. Established in 1936, the events were held in 340 cities around the world. Institute has a presence in the Americas, More information is available at uli.org. Europe, and Asia Pacific regions, with Follow ULI on Twitter, Facebook, LinkedIn, members in 76 countries. and Instagram. ©2017 by the Urban Land Institute. ULI Europe, all rights reserved. No part of this report may be reproduced in any form or by any means, electronic or mechanical, including photocopying or recording, or by any information storage and retrieval system, without written permission of the publisher. ULI has sought copyright permission for all images and tables. Front cover image: Multicoloured cargo containers, © CreativeNature_nl. Urban Land Institute 50 Liverpool Street Tel: +44 (0)20 7487 9570 London Email: [email protected] EC2M 7PY Web: www.europe.uli.org United Kingdom iii Acknowledgements This report was made possible through the support of the steering group, ULI members who filled in the survey, and those professionals who gave up their time to be interviewed in order to inform this research. ULI was also supported by the ULI Charitable Trust. ULI would like to thank the steering group: Ayse Erktin, ULI Turkey; HAS Mimarlik Ltd Giancarlo Scotti, ULI Italy; GCS & Partners Dr. Richard Teichmann, ULI Austria; Bischoff & Compagnons Property Networks GmbH Loes Driessen, ULI Netherlands; CBRE Global Investors Alistair Reason, ULI UK; Reason Consulting UK Ltd Sophia Faltseta, ULI Greece; Public Properties Company Max Barclay, ULI Sweden; Newsec AB Gerhard L. Dunstheimer, ULI Germany; ALTERIS The Real Partners The authors wish to thank the following at ULI Europe for their advice, ideas, and input: Lisette Van Doorn, CEO; Dr Elizabeth Rapoport, content director; and Amanprit Arnold, content manager. Thanks are also due to the University of Birmingham Research Team for their research assistance: Dave Newall, Robert Deakin, Szymon Parzniewski, and Özlem Young. Authors Dr Lisa Goodson Siân Thomas Professor Jenny Phillimore IRiS, University of Birmingham Professor Simon Pemberton Keele University Supported by: Charitable Trust iv | Mass migration and real estate in European cities Contents Executive summary 1 Section 1: Introduction 3 Section 2: Overview of key socio-demographic and migration trends 5 Section 3: Case study countries 10 Section 4: Impacts of migration 12 Section 5: Responses to mass migration 17 Section 6: Conclusions and recommendations 30 Notes 33 Terminology used in this report Forced migration: a movement in which an element of coercion exists, including threats to life and livelihood, whether arising from natural or manmade causes (e.g., movements of refugees and internally displaced persons, as well as people displaced by natural or environmental disasters, chemical or nuclear disasters, famine, or development project s). Labour migration: a movement of persons from one state to another, or within their own country of residence, for the purpose of employment. Source: International Organisation for Migration (IOM) (2011). 1 Executive summary © RadekProcyk “The globe is not static but In spring 2016, ULI Europe began work on a • a sense of urgency created by the influx fluid and flexible – people move research project to explore the implications of migrants; this can be a catalyst for of mass migration for cities in Europe. The transforming the real estate industry so that where there is opportunity and purpose of the research was to understand how it can respond more quickly to current and peace. If we accept that, then cities can best accommodate migrants and how future demands from occupants, a change developers, politicians, the real estate industry can respond effectively. that otherwise would have taken many architects all have an important The research was funded by the ULI Europe more years; Charitable Trust and carried out by the Institute role so that the future world for Research into Superdiversity (IRiS) at the • innovation in construction, especially mirrors the needs of the people University of Birmingham. A steering group of relating to the provision of high-density, who live there.” ULI members from eight European ULI national flexible, and low-cost housing; councils – UK, Germany, Austria, Turkey, (Participant, Copenhagen) the Netherlands, Sweden, Italy, and Greece – • increased responsiveness in planning The current movement of migrants into and were instrumental in supporting the research. processes and openness to new across Europe has substantial impacts on both approaches; European cities and the real estate industry. The The study identified a number of challenges in settlement of migrants in European cities, both responding to the new landscape brought about • the opportunity to adapt to a long-term trend on a temporary and a permanent basis, will by the increase in migration. At the same time, of tenants and users wanting and needing change cities and people’s perceptions of cities, there was awareness of the opportunities more flexibility; and affect land and real estate values. There is afforded within this context and of the potential a pressing need for multi-sectoral responses to for pursuing creative and innovative ways of • development of new knowledge and skills address the future needs of our changing urban rising to these challenges. Specific as the real estate industry develops as a populations – and, indeed, the opportunities for opportunities for innovation that were identified service; the real estate sector. for the real estate industry include: 2 | Mass migration and real estate in European cities Infrastructure Increased knowledge and housing and collaboration Spaces for interaction between existing and Increased knowledge Equitable distribution new residents and collaboration across of resources in existing and within the public and and new communities private sectors Use of low-cost/flexible Planning involvement housing solutions and different types of incentives Positive media portrayal Recommendations Preparation for secondary Active sharing of migration and family best practices building and unification Better use of Planning that is clearer Strategies of dispersal distressed urban and more responsive or concentration of areas/brownfield land to change migrants Role of planning • the scope to bring social integration and two areas. There is a real need to develop a new considered to have added to the problems of housing together, with the potential for ideas generation of migration/land use experts to an already overstretched residential market. and practice to be used to develop truly help cities respond to migration in a more In many European cities, ongoing urbanisation inclusive societies; and sustainable manner, especially given the processes have led to extreme pressure on current high inflows of migrants. affordable housing. • the opportunity to provide migrants and others who move into cities with the A significant theme emerging from the study Research participants emphasised the need to appropriate housing and amenities that findings is the perceived gap between the incentivise the private sector to provide new people need to integrate and build up a concerns that people from host communities residential units in order to shift the focus to successful life, such as affordable housing often have about increased migration and the affordable or social housing. Participants also and schools. reality. The vast majority of study participants raised significant concerns about the need for indicated that they had not yet observed a the real estate industry to be adequately Findings from this research demonstrate a clear significant impact on land use resulting from supported by the government financially lack of specialist expertise