Property values

Open space can have a direct impact on property prices, though this is not a simple relationship. In the Netherlands Luttik (2000) examined the value of trees, water and open space as reflected by house prices. He concluded that there is a strong case for the preservation of existing green areas in residential areas and the creation of green areas in new urban developments. A RICS Research paper (2007) demonstrated how green spaces enhance residential property values, concluding that different types of residential properties and different open space types affect values in different ways as shown below.

How nearby green spaces can enhance property values (RICS, 2007):


Detached

Flat

Non-detached

City park

19.97%

7.54%

2.93%

Local park

9.62%

7.92%

9.44%

Open space

2.71%

4.70%

0.44%

Where a site is being developed for resale, for example to a pension fund, ensuring that proper consideration is given to high quality open space will help to improve the overall commercial value. Indeed for investors seeking to maximise land values through development, open space provision will be a consideration in terms of creating a sense of place and contributing to design quality. Indeed quality open spaces in larger developments are often used as key features of marketing materials. Part of the process however will require the investor to ensure that proper maintenance and management structures are place to enable any uplift in land value can be retained throughout the life of a development.