An advice on what is the economical surpluses of investments in the quality (architecture, public space and amenities) of the inner city.

 

The municipality of Rotterdam wants her city to be an attractive city for the inhabitants, workers, entrepreneurs, students and visitors. The Economic Development Board Rotterdam supports this ambition and started the project Economics of Beauty to support the municipality with the realisation of this ambition. With this report the Economic Development Board Rotterdam (EDBR) focuses on the return of investment that give extra quality to the city experience.

The project Economics of Beauty starts of the hypotheses that the quality and the beauty of the inner city have an economic surplus value. What is the economic value of high quality housing, public space and cultural amenities?

By quantifying the investments, the report concludes that after a period of 15 years every euro invested in quality, produces 2,6 euro. The main effects that add to this return are:

- An attractive space invites visitors to stay longer; this results in a higher profit for entrepreneurs (shops, catering industry) in the city.

- People attract people and this results in less vacancy in the city.

- A higher quality of the surrounding area and a lower rate of vacancy results in higher value of the real estate.

 

The report is in co-operation between: Leendert Bikker, Tjistke Cieremans, David Dooghe, Sjarel Ex, Hans Huurmans, Steven Lak, Marc van Staveren, Albert Thissen and Jaqueline Veenendaal.

 

EDBR, 2o11, Rotterdam, The Netherlands