Table Of Contents
- Sustainable Methods In Construction And Development:
- Economic Impact Of Real Estate Development
- Environmental Impact Of Real Estate Development:
- The Long-Term Impacts Of Development: How They Influence Real Estate And Urban Planning?
- Finding Solutions:
- Transit-Oriented Developments:
- Environmental Impact Of Real Estate: The Future
The Economic And Environmental Impact Of Real Estate Development: Long-Term Urban Planning
Last Updated on: January 27th, 2026
Today’s Topic: The environmental impact of real estate development.
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 into higher demand for shelter and infrastructure, such as hospitals, educational institutions, shopping malls, and regional and governmental infrastructure.
This expansion tends to benefit a nation’s economy and its people’s standard of living. Growth creates jobs, and demand for raw materials, services, and real estate increases.
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 accounts for 36% of global energy consumption.
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 increases energy use during the construction phase and increases 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 by pushing 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 workers across 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, help eliminate the costs of longer transportation networks, and promote 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 impact of real estate development is considerable.
Environmental degradation from land clearing, resource consumption, and construction emissions offsets the production of impervious surfaces, which affect natural flow, raise flood risk, and reduce biodiversity.
Urban sprawl increases reliance on cars, resulting in larger carbon footprints and the 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 such as green roofs, urban forests, and rain gardens will enhance the environment, beautify cities, and improve residents’ health.
The Long-Term Impacts Of Development: 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 and grassland cover, the land loses its capacity to retain natural moisture, leading to increased 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 project’s size, it will always affect neighboring regions and the environment.
Not conducting a full impact assessment may cause undue delay in the construction process, which can be extremely expensive.
During the planning stage, real estate developers consider the effects on the land and the surrounding area. Before construction begins, plans for buildings are submitted 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 amid current, uncertain weather patterns.
Urban planning also ensures adequate road access to new areas and that public transport is available. It estimates the number of people and cars that will relocate to the area post-development.
These facilities can strain the environment and government resources if not budgeted for in advance.
Finding Solutions:
Real estate developers and urban planners are conceptualizing creative project sustainability solutions to reduce environmental impacts.
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 that utilize grey water where feasible, and the use of sustainable materials.
In this context, real estate and infrastructure developer Rofino Licuco manages clean energy projects alongside 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 gaining steam is transit-oriented development (TOD): high-density, mixed-use developments that build active, sustainable neighborhoods in relatively compact spaces.
They offer attractive living areas with convenient access to reliable transit options such as buses and trains.
The development of pedestrian and cycling routes within walking distance of homes, shops, and transport increases residents’ safety and reduces car use.
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.
Environmental Impact Of Real Estate: 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 land zoning, infrastructure investment, and land-use policies are growing rapidly as means of achieving sustainable and equitable growth across all corners.
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