A new report from the Urban Land Institute (ULI) and Ernst and Young says that a city’s infrastructure quality is a major factor for real estate investors and developers.
The Infrastructure 2014: Shaping the Competitive City report, which surveyed leaders in the public and private sectors, found that transportation, utilities and telecommunications are as important as consumer demand for investors and developers.
Conducted in January 2014, researchers surveyed 241 public sector officials and 202 senior-level real estate executives — including developers, investors, lenders and advisors — located in large and mid-sized cities across the world.
Infrastructure quality was given an 88 per cent rating for being the top influencer of real estate investment and development by the combined group of public and private sector participants. Public leaders indicated infrastructure quality as their top concern (91 per cent), while consumer demand was favoured by the private sector (90 per cent).
Strong telecommunications systems were at the top of infrastructure categories that drive real estate investment, followed by good roads, bridges and reliable and affordable energy. The report also indicates infrastructure plays a critical role is guiding real estate activity and economic development.
“This survey indicates a growing awareness among the public and private sector of the importance of investments in a variety of transportation systems, including ‘active’ transportation that offers an alternative to constant car use,” says Patrick L. Phillips, CEO of ULI. “We have entered a new era that requires new approaches to funding and building infrastructure to support the creation of communities that are healthier, more livable, economically prosperous and environmentally sustainable.”
Public transportation topped infrastructure investment priorities, with 78 per cent of respondents saying that transit should receive top priority for infrastructure improvements.
