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The Economic And Environmental Impact Of Real Estate Development: Long-Term Urban Planning
Although most first-world nations are witnessing a downturn in population growth. The world population figure is still projected to grow to more than 10 billion in 2060.
Population growth translates to higher demands for shelter and infrastructure, such as hospitals, educational institutions, shopping malls, and regional and governmental infrastructures.
This expansion tends to benefit a nation’s economy and its people’s standard of living. Growth creates employment, and there is a greater demand for raw materials, services, and real estate.
This raises prices and taxes, which, in turn, finance upgrades in public infrastructure and services.
There is another aspect to this growth, though. The greater demand for urban development translates into more construction.
The construction sector currently consumes 36% of the world’s total energy. This is a big number in the climate change debate and is putting huge pressure on construction firms to move towards more sustainable methods.
Sustainable Methods In Construction And Development
In the short term, using heavy machinery results in increased energy usage in the construction phase and increased carbon emissions into the environment.
Finished developments will use more energy resources in the long term, contributing to the carbon footprint.
The global shortage of fossil fuels has had a positive impact in that it has pushed construction firms to use renewable energy sources such as solar, wind, and geothermal power as alternatives.
Economic Impact Of Real Estate Development
Real estate development is an important driver of the economy. It employs different sectors within construction and architecture, financial and legal services, and operations, among others.
Of course, in the future, development will enhance property values, broaden the tax base, and bring more investors into cities.
Such organized and planned development can also revitalize neglected or deteriorating areas, improve a public facility, and surely stimulate further private investment.
For example, mixed-use development can effectively utilize land and help eliminate the costs of longer transportation networks while promoting local commerce.
Unfettered or unmonitored development will only lead to expensive housing, widened socio-economic gulfs, and overstretched public services.
It will also displace long-term residents and probably lose the community’s identity. Therefore, the economics of development will have to be offset against social equity and the long-term consequences for the community.
Environmental Impact Of Real Estate Development
The environmental effects of real estate development are considerable. Environmental degradation relating to land clearing, resource consumption, and construction emissions balances the production of impervious surfaces, which affect natural flow, raise flood risk, and reduce biodiversity.
Urban sprawl encourages an increased dependency on cars, which results in larger carbon footprints and loss of green spaces.
In contrast, applying sustainable development methods such as green buildings, energy-saving systems, and transit-oriented design minimizes environmental degradation.
Long-term plans should incorporate climate resilience, renewable energies, use, waste management, and ecosystem conservation.
Incorporating nature-based solutions like green roofs, urban forests, and rain gardens will enhance the quality of the environment while also beautifying cities and improving residents’ health.
The Long-Term Impacts Of Development And How They Influence Real Estate And Urban Planning
Land clearing before and throughout the building process directly affects the environment. With the loss of forest cover and grassland, the land loses its capacity for natural moisture retention, resulting in water runoff and land degradation.
Once developed, buildings consume electricity, gas, and water, directly and indirectly producing carbon emissions.
It is critical to consider the long-term effects of land clearing and construction activities. Regardless of the size of the project, it will always affect the neighboring regions and the environment.
Not conducting a full impact assessment may cause undue delay in the construction process, which can be extremely expensive.
While in the planning stage, real estate developers consider the effect on the land and the area around it. Before initiating construction, plans for buildings are forwarded to urban planning departments.
Urban planning is mandated to plan and manage the laying of water, waste disposal, and electricity networks. Proper and sustainable drainage infrastructure is also critical in the current uncertain weather patterns.
Urban planning also ensures that there is enough road access to the new areas and that public transport is available. It estimates the number of people and cars that will relocate to the area once development is finished.
These facilities can pressure the environment and government resources if not budgeted for beforehand.
Finding Solutions
Real estate developers and urban planners are conceptualizing creative project sustainability solutions to reduce the effect on the environment.
Some initiatives include greening buildings and developing green spaces and walkways within congested city precincts and suburbs. This mitigates the heating influence of concrete and asphalt in urbanized areas.
Efforts are being made to make new construction off-grid from the beginning. This involves installing solar or wind energy, efficient irrigation and water systems utilizing grey water where feasible, and the utilization of sustainable materials.
In this context, real estate and infrastructure developer Rofino Licuco manages clean energy projects in addition to his residential and commercial properties in Mozambique.
Licuco’s love for real estate development has led him to hold high standards regarding quality and sustainability.
Transit-Oriented Developments
One trend quickly picking up steam is transit-oriented developments (TODs): high-density, mixed-use developments that build active and sustainable neighborhoods in relatively compact spaces.
They offer attractive living areas with convenient access to effective transit modes like buses and trains.
The development of pedestrian and cycling routes within walking distance of homes, shops, and transport increases the safety of the residents and minimizes the use of cars. As a neighborhood, the residents are contributing to less traffic congestion and air pollution.
TODs minimize urban sprawl while redeveloping existing cities and suburban areas.
Facing The Future
Developers and town planners have certainly got their hands full. Perennial worries over global warming and sustainability only compound their issues.
Nevertheless, through foresight and vision, developers appear to be gaining traction regarding applying new solutions.
Good urban planning provides the blueprint to harmonize real estate development with broader economic, environmental, and social goals.
Strategic zoning of land, investment in infrastructure, and land-use policies are fast growing as a means of achieving sustainable and equitable growth across all corners.
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