Revitalizing Cities Through Sustainable Urban Redevelopment

Redevelopment is not without its challenges, risks, and potential unintended consequences. Land consolidation and construction within the existing urban fabric are complex processes that often require the delicate navigation of sensitive land and social issues. Planning authorities frequently face the challenge of resettling significant numbers of poor and vulnerable households, many of whom live on marginalized land or in substandard housing. Additionally, weak institutional structures for urban planning and involuntary resettlement, coupled with insufficient financial resources and limited private sector engagement, can make these challenges overwhelming. 

Even when cities successfully undertake urban development, unintended consequences may emerge. Urban renewal often leads to rising property values, which can result in windfall gains for land and property owners but negatively affect residents who do not own land, property, or businesses, frequently pushing them out due to rising rental rates. This process, often referred to as "gentrification," is becoming increasingly evident in rapidly urbanizing areas of developing countries. If not carefully managed, an increase in population density without a corresponding enhancement in infrastructure and services can further strain existing systems, manifesting as worsened congestion and heightened vulnerability to climate risks such as flooding.

So why promote redevelopment when converting new land on the urban periphery seems cheaper and less complex? Cities thrive when households and businesses are strategically agglomerated. Increased density can lead to reduced transportation and energy costs, greater efficiency in service delivery, and the fostering of innovation and productivity through proximity.

Moreover, promoting inclusivity is achievable through quality mixed-income housing located near jobs and essential services. The interest in redevelopment is also driven by the structural transformation occurring in most cities in Asia and the Pacific, where shifts in the service and manufacturing sectors require labor migration across industries. Unlocking prime land within and adjacent to economic centers—while integrating improved infrastructure, expanded green spaces, and affordable housing—allows urban redevelopment to foster more compact cities with lower greenhouse gas emissions. Ultimately, redevelopment contributes to the climate resilience of cities.

Regulatory planning framework: A prerequisite for comprehensive urban redevelopment is a functioning and responsive urban planning regulatory framework, complemented by an integrated urban governance system that enables close collaboration across institutions and levels of government. Together, these elements facilitate optimal land use, (including the effective application of floor area ratio (FAR)), infrastructure upgrades, and time-bound, context-specific intervention planning. Development control regulations and by-laws should also promote climate resilience, urban health and safety, gender equity, and social inclusion.

Area-based development: This fosters the holistic development of both existing and new areas while catalyzing further urban growth, contributing to a stronger overall city landscape. An area-based redevelopment planning framework offers a more comprehensive method that integrates amenities, infrastructure upgrades, street improvements, and economic growth. It can transform existing areas—including slums and urban poor neighborhoods—into well-planned, integrated spaces within the urban fabric, thereby enhancing the overall livability of the city.

Robust land records and property valuation systems: Periodic updates to land and property-related information (e.g., land use, ownership, FAR, development control regulations) are essential for effective urban planning and intervention. These updates ensure transparent data, facilitating the most informed and effective decision-making processes.

Cities empowered to access financing, absorb capital: Urban redevelopment projects require significant financing throughout various stages of implementation. States and larger cities should establish an apex urban redevelopment fund to lower finance costs, enable private sector access, and ensure sustained funding. Governments can leverage development partners for advisory services and financing facilitation through risk-sharing instruments.

State governments should empower larger cities to mobilize affordable and sustainable financing solutions, while smaller cities can benefit from state-level funds and bond markets to support urban redevelopment. A financially self-sustaining model, independent of public funds, is key to effective redevelopment. Utilizing land value capture mechanisms can enable governments to generate and redistribute public revenues – augmenting investment in essential infrastructure and supporting more equitable urban transformation.

Public-private-people partnerships: Private sector participation should be incorporated and incentivized through feasibility studies for urban redevelopment projects, easing the burden on the government while enhancing infrastructure development—not only for basic services but also for housing, office spaces, hotels, and other urban facilities (e.g., public open spaces, amenities). Such partnerships provide access to the technical expertise, experience, and efficiency of private entities. Moreover, engaging residents in the process fosters inclusive urban redevelopment strategies and helps mitigate resistance to redevelopment efforts.

Institutional capacity for coordination and cooperation: Holistic urban redevelopment requires extensive coordination across multiple fronts—spatial, economic, social, and financial. Institutions must establish mechanisms to foster cooperation while strengthening their capacities to harness the economic potential of urban areas. Urban local bodies need skilled human resources to effectively negotiate, coordinate, and collaborate with various stakeholders. Ultimately, coherent institutional, governance, and regulatory frameworks are essential for sustaining long-term coordination and cooperation.

Green infrastructure and preservation of cultural heritage: Cities can transition toward a more climate-responsive built environment by mandating green infrastructure provisions in plans and development control regulations, incentivizing their implementation, and fostering convergence across various government schemes. Where applicable, redevelopment plans can also integrate strategies for heritage and cultural preservation through adaptive reuse while maintaining existing built forms. Additionally, promoting pedestrianization and natural cooling mechanisms through sustainable building materials can further revitalize urban areas.

Community engagement and inclusivity: Engaging citizens in a highly technocratic urban redevelopment planning process has traditionally been ineffective. To address this, these processes must be simplified, and dedicated citizen engagement models developed. Platforms that encourage citizen participation in planning and implementation can help mitigate adverse impacts. A strong civil society presence, and partnerships with civil society organizations can enhance citizen engagement, particularly among economically weaker and vulnerable communities.

Databases on urban redevelopment projects: As redevelopment policies and regulatory frameworks evolve, institutional capacities strengthen, and redevelopment gains momentum, cities will need to gather, process, and access relevant information to guide the design, planning, and implementation of redevelopment initiatives across the region. Establishing a database of critical information on ongoing and completed urban redevelopment projects could provide valuable insights and benefits sooner rather than later.

Asian Development Bank. 2024. Rejuvenating the City: Case Studies in Urban Redevelopment and Renewal.