Investigating Why Developers Prefer to Built on Greenfield Sites Rather than Brownfield Sites

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Investigating Why Developers Prefer to Built on Greenfield Sites Rather than Brownfield Sites

Many businesses and industries prefer developing green fields to avoid

the complications involved with Brownfield’s, specifically with

development in urban areas. Extensive development of green fields

particularly combined with underdevelopment of Brownfield’s and other

infill properties can intensify problems of urban sprawl.

Developers prefer Greenfield sites, despite the huge rise in land

values, because they are straightforward and produce better returns at

lower risk. In high-demand areas, such as the east of England around

Cambridge, land costs more than £2m an acre.

The trouble is, the biggest house builders still prefer to build on

Greenfield sites, because Brownfield sites are much more expensive to

develop. They are often contaminated, or owned by several parties.

With Brownfield sites it is likely to pay extra as VAT charged at

17.5% on refurbishment or redeveloping existing buildings whilst

Greenfield house building is exempt.

What changes occur in an area as it undergoes the process of

gentrification?

It occurs in several important stages everywhere:

1. A 'pioneer group' moves in first. These people are low income

professionals and they move into an area for cheap house prices.

As in London docklands, house renovation was also needed which

these people could afford. They tend to be young and although they

have no children, want to be near the city centre for improved

access to their jobs.

2. This group will start to improve the environmental and building

quality because they want to live in an attractive area. Group

specific services started to flourish in docklands (e.g. wine

bars, delicatessens) because there was a threshold population for

business to be profitable in a once ailing and depopulating area.

3. The area subsequently becomes fashionable and now attracts the

higher socio-economic groups and the high income bracket

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