Cities Think Big Despite Uncertain Development Market

28 December 2007 - 1:00pm

Despite a rocky real estate market, cities across the globe are investing in large-scale development projects.

Some of the biggest cities in the world are proposing the most ambitious real-estate projects in a generation, a sign of growing confidence in urban living even as the current financial landscape grows bleaker.

The list is long and expensive, with more than 15 ventures, some of which are expected to cost as much as $30 billion: Four in New York City, at least three in Dubai, two in London, Chicago and Milan, and one in Amsterdam, Los Angeles, Paris and Mumbai.

Most of them reflect the growing popularity of downtowns as places to live, shop and work. For example, developers say New York's Hudson Yards project, to be built over a rail yard on Manhattan's West Side, is needed because the city is running out of office space.

But these are inauspicious times for such plans. Banks are sharply cutting back on commercial real-estate loans. While some projects such as those in cash-rich countries like Dubai are somewhat insulated, developers are worried privately that many of these ambitious, city-changing endeavors -- difficult to complete in good times -- may be at risk.

Source: The Wall Street Journal, December 27, 2007
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No matter how one wanted to organize the ideal city, housing security would be part of it. No community can function effectively if large numbers of its residents are regularly displaced or perpetually at risk of being displaced.