ECONOMICS

Real Estate Economics

Real Estate Economics

Question-1

Urban redevelopment

The process in which an urban neighbourhood or area is rejuvenated and rehabilitated is termed as urban redevelopment. The overall process of renewal might include demolishing or even running down the old structures that are there and replacing them with the new housing schemes for the people that are up to date. It might also include adding some of the features like up to date housing or adding a feature like stadium or theatre (Weber, 2002, p.540). Urban redevelopment is usually carried out for the purpose to pursue the people with resources and wealth to come and live in that area. It is also known as Urban Renewal or gentrification process.

History of Urban Redevelopment

The idea of urban redevelopment was first seen in earliest days of urban development. The approach is commonly seen by regimes that are expensive in their economic and social policies. There was an increasing need for urban redevelopment in 19th century as the overcrowded condition of the city created a lot of headache for policy makers. London was not the only city that was facing this problem; other major cities like New York and Paris were also going through this problem (Weber, 2002, p.540). The major cities were troubled by industrial revolution. From this a reform agenda appeared, and using the progressive domains, renewal would most of the times reform its residents. There were many arguments on that reform, such moral, economic and many others.

Taking care of the crowded cities was not the only reason for the initiation of urban redevelopment. There were also this notion that some of old and defoliating structures were possibly causing this to happen. There are architects who are being employed specially for this purpose of urban redevelopment. For instance Baron Haussmann was assigned with the task of redevelopment of Paris (Wyly & Hammel, 2001, p.276). The redevelopment included abolition of some of slums, deconstruction and construction of some of the degraded houses.

Rationale for Urban Redevelopment

It is part of land redevelopment that is being done in areas that have land usage that can be termed as moderate or high density. Redevelopment is a subject that needs lot of consideration; the earliest idea of redevelopment was seen in 19th century when some of the developed nations faced an intense phase of reconstruction. The reconstruction had a major impact on many urban landscapes (Wyly & Hammel, 2001, p.276). it has played a very important role in changing the overall demographics and history of the cities that can be seen around the world. The process of urban redevelopment involves relocation of some of the businesses, the demolition of some of the structures, and eventual relocation of the people. There an avid usage of eminent domain as a legal instrument (McGuirk et al, 2011, p.1841). The eminent domain is an instrument that is employed when Government needs to take private property for city initiated development projects. The process might also be carried out in some of the urban ...