How Mobility is Driving Change in Property Development - Lessons from the Nordics

City development and transport are fundamentally linked, yet they are often siloed into sectors that rarely interact. Beta Mobility bridges these sectors, fostering partnerships that enhance city liveability, reduce climate impact, and promote social cohesion. Based on the challenges we hear a lot of real estate developers, here are four emerging trends from urban development in the Nordics, a region exemplifying best practices in urban development.

Over the last 18 months, Beta Mobility have been working with real estate developers to help them navigate the evolving landscape of mobility within urban development in the Nordics. From our experience, there are emerging a series of macro and regional trends that are going to affect how cities are developed in the future. These trends present both risks and opportunities for real estate developers navigating this new landscape.

Trend #1 The Impact of Climate Goals and Urban Development Regulations

Human-caused climate change represents a significant global challenge , with the buildings and construction sector being the largest emitter of greenhouse gases, accounting for a staggering 37% of global emissions. The transport sector isn't far behind, contributing 30% in developed countries. Both construction and transport are fundamental to urban development, and regulations from transnational, national, and municipal governments are being introduced to decarbonise these industries.

Regulations dictating decarbonisation are being implemented at an EU level. The European Commission is currently developing a roadmap to decarbonise the building and construction industry, which will likely involve a limit on embodied lifecycle emissions or form of carbon tax, and has a provisional agreement that mandates the provision of EV charging facilities and bicycle parking in new developments.

At the local level, many Nordic municipalities are introducing strict parking norms in new developments as a means to combat mobility emissions. Copenhagen leads with a maximum parking norm for new developments of one car parking space per 250 m2, equating to roughly 0.3 cars for every apartment. Oslo isn't far behind, with a norm of 0.7.

How does this affect real estate developers?

With CO2 emissions from buildings under scrutiny, constructing underground parking garages will become less viable, and any parking that is available will be strictly controlled in terms of both number and placement within the development.

The challenge lies in the ongoing demand for mobility from prospective residents and tenants. Being unable to meet this demand with traditional parking solutions will necessitate smart solutions for flexible space utilisation, new mobility services, mixed-use development to reduce mobility needs, and construction in areas well served by cycling and/or public transport infrastructure.

Trend #2 Bicycle Parking is Growing as a Challenge

Municipalities are increasingly recognising the benefits of developing cycling cultures within their neighbourhoods. Cycling not only helps reduce a city's carbon emissions but also offers proven health and economic benefits.

To facilitate this transition, municipalities are not only expanding cycling networks (sometimes at a slow pace) but also enforcing regulations in new property developments regarding the required number of bicycle parking spaces. Compared to the significant reduction in car parking, the mandated number of spaces for bicycles may seem excessive (they are planning for the culture they aim to establish, not necessarily the one that exists now). Copenhagen has implemented a requirement for 4 bicycle parking spaces per 100 m2, while Oslo mandates 3.

The implications become significant when scaled to a new urban development. Consider a development of a moderately large project of 100,000 m2. This would necessitate 4,000 bicycle parking spaces, requiring 6,000 m2 of space to accommodate them on a single layer—an amount of space that cannot be overlooked in a developer's financial planning.

Furthermore, the location of this parking is critically important. A study by the Norwegian housing developer OBOS showed that bicycle parking cannot merely occupy leftover space. If poorly located, it will be underused, leading to increased demand for the already limited car parking spaces. The placement, accessibility, and level of security are all crucial factors in determining its use. Rather than viewing this as a mere expense, it should be considered an investment in future-proofing the development.

Trend #3 The Rising Importance of Tenant Education

Navigating new regulations introduced by governments is one aspect of the mobility puzzle. The other, more challenging aspect involves engaging prospective residents and commercial tenants in the process. At Beta Mobility, we have observed that resistance often stems from a lack of awareness about the benefits of alternative mobility solutions—be it related to health, time savings, or financial gains—rather than outright resistance to change.

Active engagement with tenants is crucial to overcoming this challenge. It is vital to leverage established communication channels to emphasise the advantages of new mobility alternatives, thus dismantling mental barriers. This approach includes:

• Direct Communication: Regular updates and information sharing about available mobility services, especially at the early stage of contract negotiations or onboarding new residents.
• Education and Workshops: Organising sessions for tenants to understand and select mobility packages tailored to their lifestyles.
• Success Metrics: Focusing on tenant and resident satisfaction to gauge the effectiveness of these educational efforts and new mobility solutions.

Encouraging tenants and residents to explore new mobility services not only fosters a sustainable urban future but also creates opportunities for additional revenue streams through lifestyle products. By informing and involving tenants in the mobility transition, we position mobility services as an essential aspect of modern living.

Trend #4 Public Transport Authorities Seek Collaboration

Sectors beyond property development are entering the conversation. A notable trend is the growing readiness of public transport authorities to engage in cross-sector collaborations through public-private partnerships. This strategy expands the scope of urban development by incorporating comprehensive mobility solutions into the planning and implementation phases of projects.

An example of this collaborative approach is seen in the efforts of Kolumbus, the Public Transport Authority in Stavanger, Norway and their work in Hinna Park. The project aims to integrate diverse mobility services, including buses, car-sharing, car-pooling, e-scooters, and shared bicycles, directly into urban development plans.

Such partnerships play a crucial role in creating urban developments that are well-connected and environmentally conscious, representing a significant move towards more liveable and sustainable communities.

The Role of Property Developers Remains Unclear

Despite regulatory conditions pushing towards more sustainable mobility in urban development, a gap persists between the public and private sectors, leaving unanswered the crucial question of who bears the primary responsibility for fostering this essential behavioural shift among residents.

Property developers play a pivotal role but should not shoulder the entire burden, especially concerning aspects beyond their control. According to Beta Mobility's experience, their involvement can be categorised into three key roles:

• The Orchestrator: Developers lead by designing integrated mobility strategies, implementing technological solutions, and managing operations to ensure seamless transport services within their developments.
• The Facilitator: They provide essential infrastructure, like parking and charging stations, and foster collaborations that promote innovative mobility solutions, making sustainable transport options more accessible.
• The Advocate: Working alongside municipalities, developers ensure that the necessary cycling and public transport infrastructure is in place, advocating for the sustainability and accessibility of their projects.

Essentially, developers should orchestrate what they must, facilitate what they can, and advocate for what they need.

Want to discuss this further?

Beta Mobility's work with city development reveals a future where new mobility and real estate development intersects. The crux lies in educating tenants about sustainable mobility and the nuanced role of property developers, who must navigate, adapt, and advocate within this evolving regulatory landscape.

If you'd like to discuss this more then get in touch or leave a comment.