Innovation in urban real estate: the role of sustainability
ISSN: 0263-7472
Article publication date: 3 September 2018
Issue publication date: 5 April 2019
Abstract
Purpose
The sustainability agenda has already become widely recognised in real estate analysis. However, two challenges are to overcome before sustainability issues are brought fully into the professional and academic mainstream: first, the provision of sustainability enhancing qualities; and second, to overcome deep-rooted scepticism towards the higher cost element of such qualities (i.e. creating economies of scale). Another potentially related issue is that the notion of innovation is gaining popularity in this field. Innovation-driven change is cyclical and unpredictable, which in turn calls for an explicit evolutionary and complexity perspective. The paper aims to discuss these issues.
Design/methodology/approach
Critical literature review. The author’s own experience as participant of the discussions and debates is also used.
Findings
The conclusions suggest that, in line with evolutionary and complexity principles, innovations exist and emerge within the real estate industry itself, and in fields related to it – and this includes various aspects of promoting sustainability thinking.
Research limitations/implications
This contribution uses valuation automata as an example of this argumentation.
Practical implications
The concept of complexity refers to emerging qualities found in the evolution of the development of an industry; the practical implication of complexity concerns the capability of managers to react competently in unfamiliar circumstances.
Social implications
Thus, innovation in real estate is both economic and socio-cultural.
Originality/value
No similar (i.e. theoretically informed) papers on innovation or sustainability in real estate analysis have been written to the best of the author’s knowledge.
Keywords
Citation
Kauko, T. (2019), "Innovation in urban real estate: the role of sustainability", Property Management, Vol. 37 No. 2, pp. 197-214. https://doi.org/10.1108/PM-10-2017-0056
Publisher
:Emerald Publishing Limited
Copyright © 2018, Emerald Publishing Limited