AUGUST 2021CONSTRUCTIONBUSINESSREVIEW.COM8IN MYOPINIONUrban densification is becoming more and more necessary in the real estate field. Urban extension is a vicious cycle as new greenfield projects require additional connections (roads, networks, ...) and more public infrastructures (schools, administration offices, ...). It also increases soil artificialization and contributes to a higher risk of flooding, impacting the biodiversity and significantly decreasing the volume of farming lands and wild vegetations.The existing assets in western Europe are often dilapidated because they were built during the 60's or the 70's, right after the economic recovery that followed the second world war. The majority of those constructions built during that period are loadedwith asbestos and lead. These unwanted toxic materials require specific care and a significant cost to be removed and depolluted. On top of that, the energy upgrading required by new regulations adds new construction market niches, promoted by the states in return of tax facilities. All these factors are contributing to a real construction cost increase, impacting the capex and the projects' financial feasibility for the refurbishment and densification of existing assets.Moreover, the urban densification for retail, offices and hotel projects is nowadays a key success factor for better business development. In fact, these types of projects are fully linked to urban connections. They also CONSTRUCTION DENSIFICATION CHALLENGES By Moad Ziadi, Director of Construction Projects Europe, URWMoad Ziadi
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