UNESCO stands for United Nations Educational, Scientific, and Cultural Organisation. It’s an agency of the United Nations that promotes peace in the world through international cooperation in the fields of education, science, culture, and communication. This agency designates locations in the world as UNESCO sites based on their importance as cultural heritage to promote tourism and spread global awareness.
In today’s blog post by Flooring Expert Dubai, we’ve explained the importance of UNESCO sites and their impact on real estate markets around such sites globally with reference to some case studies.
The Relation Between UNESCO Sites & Property Value | The Investigative Findings
There’s a close connection between UNESCO sites around the world and the property value in and around such locations. That’s due to numerous factors involved, including tourism boost, more rental yields, capital appreciation over time, etc. In short, UNESCO sites play a crucial role in defining the local economies around them and significantly impact the real estate market of that particular location.
Unravelling The Global Significance of UNESCO Sites
At present, there are over 1100 locations around the world that are designated as UNESCO sites and each one of them is unique in its origin, heritage, significance, and universal value. The Great Wall of China, the Pyramids of Egypt, the Eiffel Tower, and so forth are a few examples.
This designation as a UNESCO site comes with numerous perks and pros, such as improved global visibility, unparalleled recognition, a tourism boost in that area, funding by agencies to preserve that area, and so on.
The Impact of UNESCO Sites On Property Values & Real Estate Markets
What do you think happens when UNESCO declares a certain location in the world as a UNESCO site? What’s the impact on property values in that area of all other things? Yes, you guessed that right. There’s a significant boost in the value of property in that area and its surroundings. And, there’s a direct relation between the two of these phenomena.
That’s because there’s a sudden increase of tourists or you can say a tourist surge occurs for that particular region. Because people want to explore what’s new and why UNESCO has declared that particular location as a UNESCO site. Aspects like cultural heritage and historical significance of that region come to the limelight and local property owners cash in on this opportunity. There’s an appreciation in the property values of that region and the real estate boosts like never before.
But what about the surrounding regions? Does the same happen to the property values of those neighboring areas? Not exactly, the property value doesn’t increase but there is an increase in the rental yields (incomes) of those areas due to the high influx of tourists and visitors.
What’s In It For International & Local Investors? The Investment Opportunities Explained
From luxury developers to boutique hotel operators, the appeal of properties around UNESCO heritage sites increases immensely. In today’s world, eco-tourism and sustainable travel practices are the new trends. Modern developers in collaboration with investors cash in on this opportunity by providing travelers and tourists with authentic experiences and sight views of the cultural heritage without alleviating the modern-day amenities.
They preserve the architectural design and cultural significance of the location and incorporate adaptive designs into the location for improved comfort and a luxury experience. That’s how most developers and architectural engineers in collaboration with local and international investors earn their bread and butter.
Does That Mean Urban Development Is Restricted In Such Locations?
No, UNESCO has no such limitations or restrictions imposed on any such city or location in the world. However, there is a significant influence on the urban development of cities and infrastructure around such cultural heritage sites. For Instance, Paris has made efforts to restrict the heights of buildings to a certain limit to maintain the visual integrity of the Eiffel Tower. And that means no more skyscrapers in Paris soon.
But on the brighter side, it doesn’t completely restrict urban development because the expansion of cities is the utmost requirement due to the growing population. And, no one can put a break to it. So, what’s the solution? City planners and design architects are tasked with finding a balance between preservation and development so that new projects enhance the integrity and character of UNESCO sites.
What’s With Overtourism In UNESCO Heritage Sites?
Overcrowding in a UNESCO heritage site or location due to more numbers of tourists visiting at the same time is called over-tourism. This phenomenon can significantly affect the infrastructure, and traffic situation. It can also disturb the resident-tourist balance of that specific location leading to deteriorating quality of life standards and complicating the real estate market.
However, we’re living in a modern world where advancements in the field of technology and science have been made enough to deal with such challenges and situations. Now, planners make use of VR (Virtual Reality) and AR (Augmented Reality) technologies to improve their design strategy. Similarly, smart technologies are integrated into urban development projects to improve the experience of visitors and add to the living experience of residents.
The Enhanced Real Estate Markets Due To UNESCO Sites: Case Studies Explained Briefly
In Barcelona (Spain), there is an influx of tourists and investors have capitalized on this opportunity by purchasing premium properties from homeowners and turning them into highly beneficial rental yields for a permanent handsome source of income.
In Istanbul (Turkey), the historic regions are declared as a World Heritage Site by UNESCO. Investors have invested in the modern development of the city and gained immense profits due to the strategic planning of developers that has preserved the city’s cultural heritage but allowed expansion and advancement.
Machu Picchu is a historic sanctuary in Peru with the iconic Incan site that has encouraged tourism in the region. The local developers have invested in eco-friendly accommodations in the region to gain profits from visitors and tourists.
The Final Words
The global appeal of UNESCO sites significantly improves the real estate markets and appreciates the property values in that location. However, there are challenges to developers and city planners for urban development and sustainable design practices as well. For investors, there are numerous opportunities to capitalize on and improve their profits by understanding the dynamics of these cultural heritage sites by UNESCO.