The Economic Multiplier Effect of Sustainable Urban Transformation: The Role of Green Investments in the Real Estate Market

Aziz Can Ensazl and Ece Özmen

ERES from European Real Estate Society (ERES)

Abstract: Sustainable urban transformation emerges as a comprehensive solution to the infrastructure challenges and environmental degradations caused by industrialization and rapid urbanization, addressing economic, social, and environmental dimensions. This study analyzes the direct and indirect economic impacts of urban transformation projects, emphasizing employment creation and value increases in the construction sector and related industries. Additionally, the research highlights the contributions of green investments to price increases in the real estate market and their benefits in terms of energy efficiency and environmental sustainability. The study examines two example projects from Turkey, Piyalepaa Istanbul and WE Haliç, in detail. It was determined that these projects were developed in accordance with sustainable urban transformation principles under green building certifications such as LEED-ND and generated significant economic multiplier effects. The findings reveal that sustainable approaches provide not only environmental benefits but also long-term economic advantages. The study demonstrates that promoting green investments contributes to making cities more resilient and livable while fostering sustainable growth in the real estate market.

Keywords: economic multiplier; LEED-ND; Real Estate Market; sustainable urban transformation (search for similar items in EconPapers)
JEL-codes: R3 (search for similar items in EconPapers)
Date: 2025-01-01
New Economics Papers: this item is included in nep-ara, nep-env and nep-ppm
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Persistent link: https://EconPapers.repec.org/RePEc:arz:wpaper:eres2025_178

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