Urban Management: A Value-Based Approach for Spatial Planning

In the real estate development process are several key actors involved who have different conceptions of how and which kind of value within real estate projects is to be obtained. Architects focus on the aesthetic quality of buildings and define value as contribution to the cultural uniqueness of areas. Urban designer judge real estate projects by their functional contribution to the master plan of urban development. Investors and developers however are particularly interested in a high cash flow over the entire life cycle of properties. The diverse disciplinary backgrounds and objectives of these key actors lead frequently to conflicts in the development process and hinder the public permission of real estate projects. Urban management as a new approach for spatial planning shall contribute to the overcoming of the linguistic and conceptional confusion which is inherent in the real estate development process. Key idea of the urban management approach is the maximization of the land value of an outlined area as central indicator for the well-being of the inhabitants and other users of space. As e.g. the aesthetic quality of buildings and larger areas as well as the quality of the public infrastructure are reflected in the land value, this indicator allows managing not only the economic but social and aesthetic betterment of a certain area. Therefore, the public welfare could be better served by an urban management approach than by the more traditional, prohibitive approach of spatial planning.