Urban greenery as a component of residential real estate value

Nowadays greenery in the city is being referred to as ‘green infrastructure’. It performs an undeniable climate function and it has become very valuable and desirable aspect in humans life. Among other things, greenery is important when choosing the location of a new flat. Building in a compact way, even at the expense of green areas is not uncommon in Poland. The undeniable fact is that the proximity of greenery is what makes the location of the apartment attractive. How that affects the prices?

DIAGRAM 1. AVERAGE PRICES OF FLATS NEAR GREEN AREAS AND AVERAGE PRICES IN DISTRICT (PLN/sqm)

source: own elaboration on the basis of data from AMRON Centre (data from 2017-2020)

Larger green areas can be easily found in most cities. These areas are eagerly used for recreational purposes, doing sports or just for relaxation. The presence of the park significantly increases the attractiveness of the location, thus the prices of apartments. Chart 1 shows the average transaction prices of residential premises in three districts of Warsaw and the prices of apartments near two parks and the forest. The average price of apartments at Gwiaździsta street, where Kępa Potocka Park is located, are 13% higher than the average price in Bielany district. A similar price distribution can be seen near the Skaryszewski Park, where apartments are more expensive by up to 700 PLN per square meter, compared to average price for the Praga Południe district. Slightly larger compared to the rest, but the highest price difference, was found for properties located near the Kabaty Forest in the Ursynów district, where apartments are up to 14% more expensive. Therefore, it may be estimated that apartments located close to large-scale green areas increases the value of real estate by an average of 12%. Windows with a view of a beautiful park and the possibility of going for a longer walk in the midst of greenery is visibly important asset for which you have to pay.

What might be the trend in the future? Will be apartments in such location more desirable?

The building land earmarked for housing construction is significantly limited in cities. The number of investment areas, especially in attractive locations, is negligible. A noticeable tendency among developers is to maximise intensification of development. As a result, greenery in most residential development is limited to areas of lawns, which have rather an aesthetic function. Thus, it complies with the provision of the minimum biologically active surface, but it does not affect residents’ quality of life. The effects of disregarding functions of vegetation are becoming more and more obvious. The growing number of multi-family buildings of this standard results in an increase requirement for apartments located closer to green areas.

The benefits of greenery in cities are enormous. Research conducted by J.G. Migneron confirms that greenery absorbs noise in a similar way to sound-absorbing materials used in construction. Coniferous trees, which have a large foliage size, turned out to be the largest sound absorption coefficient. Low grass type (0.6 meters high) or shrubs also have high noise attenuation properties. More importantly, it has been proven that the width of green has a clear impact on reducing high frequency noise. That is why it is so important to design green belts and not to limit it to individual pieces. Providing greenery in the city, not only helps to reduce noise, but also guarantees better ventilation. The air flowing from the vegetation is enriched with oxygen and is free of harmful gases such as SO2, H2S, etc. Indirectly the vegetation also helps fight with suspended dust. This is even more important because pollution standards in Polish cities are constantly exceeded, even by several hundred percent. Greenery also helps to reduce the temperature amplitude by absorbing heat during the day. This is important in the summer, when the air overheats, which reduces quality of life. Greenery in the urban environment also has an important role in improving the water management system. Water retained by the plants relieves the sewage system and eliminates the need for expensive irrigation systems. Therefore, we should plan and protect greenery in cities. Yet there are cases of cutting down trees or shrubs and turning squares into concrete deserts. One of many examples is the square in Skierniewice, which has been transformed from a public green area into a concrete square (Picture 1.). Then, it is not a surprise that this area lost its climate function. Furthermore, flats located near this square can be considered now less attractive despite the location in city centre. Thus the actions described above can reduce prices of existing flats in great locations.

PICTURE 1. MARKET SQUARE IN SKIERNIEWICE BEFORE AND NOWADAYS

source: miastojestnasze.org

Urban greenery is not limited to areas such as parks. It includes green spaces, botanic gardens, allotment gardens, cemeteries, flowerbeds and more. In addition to the undeniable climate function, greenery has aesthetic, recreational and socio-educational functions. Climate change is an increasingly noticeable problem in everyone’s life. Scientists’ warnings about the effects of climate change increase our awareness of ecological life. This leads to changes in lifestyle, including the desire to spend time closer to nature. Thus, people will be more eager to choose housing estates nearby green areas.

According to UN forecasts, in 2025, 60% of the world’s population will live in large urban agglomerations, and 80% in cities with more than 20,000 inhabitants. Increased number of population is not going to translate into an increased number of greenery. With the increase in population, there is an increase in demand on the housing market. Lack of relevant legal procedures in Poland makes it impossible to manage rational land use. This will lead to progressive decline of the green areas. Furthermore, the effects of these changes may include an increase in the prices of apartments located close to parks, forests or even smaller green areas.

On the other hand, the natural dimension in the concept of urban development is taken into account since antiquity. Over the ages, the idea of ​​greenery in the spatial structure has evolved, however it has always been an integral element. It is not surprising then, that urban green policy is included in the urban development strategy. One of the most important documents for sustainable development is the 2030 Agenda adopted by all members of UN. Document has many major goals including strengthening resilience and adaptive capacity to climate-related hazards and natural disasters. This for sure challenge us to take the necessary steps to improve condition of the cities. Today, this postulate is guided by many local government initiatives. In addition, hundreds of projects and platforms operate to conduct comprehensive, innovative, promotional and educational activities to prevent climate change. One of the organisations cooperating within the platform is the Polish Association of Developers, at which operates a multidisciplinary team of Eco Avengers experts. They are the authors of an eco-guide for developers. The goal is to popularise knowledge and promote proven ecological activities on new investments throughout Poland. The Eco Avengers team is also the author of the Last Chance Decalogue – the Ten Commandments for developers with ecological cross-sectional solutions for each new investment. Among the recommended solutions that should be implemented, they are calling to collect rainwater, planting of greenery or sorting construction waste to help the environment as much as possible.

Conclusions

In the face of increasing population and urbanisation of cities, green areas are decreasing. Thus, the presence of greenery in close proximity to residential buildings is becoming more and more important. At the same time, the awareness of sustainable urban development is growing not only among urban activists, but also among local government officials and entrepreneurs, who have a huge impact on the shape and appearance of our cities and the quality of life of their residents. Therefore it can be assumed that flats located near such areas will be more and more desirable and their prices may rise.

Aleksandra Kalinowska
Junior Maintenance and Development Specialist