How to wrap up the last two incredible days in Bilbao for the RICS Built Environment European Summit 2024?
Here’s an extract of my “closing keynote” speech with my take ways and points of inspiration and photos to match!
Juan Mari Aburto, Mayor of Bilbao, and Asier Abaunza Robles, Bilbao City Councillor, showed us how in 30 years, they have transformed their city from an industrial wasteland experiencing social unrest, to a thriving urban area with a cultural hub, nature based solutions and social value.
There are many lessons learned which cities across the world can look to for inspiration. One of those is that investment in nature and social value pays off - whether through the smart investment in affordable housing facing onto a new park built over the railway yard which recouped the investment made in the urban development, or as we learned on our private tour of the Frank Gehry designed, Guggenheim Bilbao Museum, investing a few million in an under-appreciated painting by Mark Rothko, which, now - several years on, is worth more than an entirely new Guggenheim museum!
My second big revelation is that Climate change and its various impacts, both physical and regulatory, is a game changer for the Real Estate Sector. The investment model will never go back to where it was before.
Especially when superposed upon the macro changes as Tom Leahy pointed out: demographics, changing ways of working and consuming, digitalisation and AI. Real Estate investment is now only for active asset managers and as Stefanie Lütteke said “if you have a smart strategy, you have a new business case.”
Or as Martin Trodden stated “ The brown discount is not a risk, but a reality. It’s hard work to create a green premium.”
But let’s not forget what Diana Urge-Vorsatz eloquently reminded us : “The key to net zero is first to reduce our energy and material demands.” Then, Gulnara Roll explained the essential work she is doing with Global ABC’s materials hub, to provide the insights and ressources for our sector to shift towards reused, recycled and bio-based materials.
A great case study by Amal del Monaco shows us that this new redevelopment model can be achieved and make business sense: Patrizia’s renovation of the Louise Tower in Brussels, which retained the 1960’s structure, saved 10,500 Tons of embodied carbon, all whilst creating a 70% savings in operational carbon.
As I leave Bilbao today from the City’s sleek and efficient Santiago Calatrava LLC designed airport, I am thinking about how Bilbao has leaned into sustainability, nature, culture and design as a force to transform their city.
I will leave Bilbao with the warm feeling that, across Europe, there are built environment professionals who are committed to charting a future that is more sustainable, better for our communities and better for our planet, following Bilbao’s lead.
Stay tuned for my next post on RICS France “Grand Conference” later this week!
