MIPIM: Open space deficit in London leads to £1.3b lost commercial value

A study by the Urban Land Institute and global design firm Gensler into the value of public open space reveals that businesses' desire to be located in close proximity to open spaces could harvest £1.3 bn (EUR 1.5 bn) of investment for the creation of new public space in London. This could offset London's future open space deficit, projected at 1,100 hectares by 2031.

Entitled 'Open Space: an asset without champion?', the report, which was presented at MIPIM in Cannes, further found that 95% of property professionals would be willing to pay up to 3% more for property with easy access to quality open space. 'Access to open space is the key to making cities more liveable, and clearly to create greater economic value,' said Ian Mulcahey, a principal with Gensler and global leader of the firm's urban planning practice. 'Our research shows that the tremendous economic value of open space is not being fully realised. As leaders within the design and construction industries, it is our responsibility to champion the balanced development of our cities and the need for public and private sectors to work together on open space provision.'

More than 350 property professionals from across Europe - including investors, developers and advisors - responded to the Gensler/ULI survey exploring the use and need of open spaces. The findings show that open space has strong economic, environmental, and social value which to date is not being fully realised.

The survey results also show that respondents value accessibility to open space but feel that cities do not provide enough of it; 70% use open spaces at least once a week but just over half (54%) thought cities had adequate provision. Population growth and migration towards successful cities increases the pressure on open space provision and the report warns that without the creation of more open areas, London will have an open space deficit of 46% by 2031.

According to the report, public-private partnerships would be the most appropriate and effective means of funding open spaces, with 84% of respondents believing that both the public and private sectors should be responsible for the development of open spaces. This percentage rises to 100% among developers, indicating a clear willingness by the private sector to engage in the provision of open space.