To what extent do developers capitalise on urban green assets?

Abstract

Developers are interested in the fact that people are keen on living close to urban green spaces – and especially that they are willing to pay for it. This study aims to investigate to what extent developers capitalise on green space proximity, and to what extent they use green space proximity as a selling point in their marketing communications. We investigate developers’ activities around 107 public parks and green squares in Lodz, Poland, between 2011 and 2021. We focus specifically on how many new residential buildings were built within a 500-metre buffer around the parks, divided into an inner buffer (within 100 m) and an outer buffer (within 100–500 m). (Despite being farther, the outer buffer is still considered to be near the park.) Our results show that most new residential developments occurred around large and very large parks, parks characterised by the highest multifunctionality, and – most importantly – parks otherwise known to serve as amenities (positively influencing real estate prices). The most attractive parks tend to attract the most developments. Furthermore, the larger the park, the smaller the share of standard new developments. Additionally, we found that luxury developments were more likely to be advertised as benefiting from green space proximity, even if they were not located within the inner (100 m) buffer. We discuss these results in the context of external benefits reaped by developers as well as various cases of abuse or greenwashing claims in marketing new residential developments. We indicate how developers who build up informal green spaces (most new developments were sited on land that was previously not built up) reap external benefits provided by publicly maintained green spaces, and how this fits into the neoliberal urban green growth machine.