The imperative of regeneration for safeguarding a city’s urban health

In cities around the world, there is a strategic imperative to prioritize urban regeneration. To find out more about how areas in decline is affecting cities and what can be done to revitalize them, we spoke with Bilal Rammal from Roland Berger.

The health of a society is reflected in its urban spaces: where residents live, work, and play. These neighborhoods are where citizens engage in practical things like shopping, education, and entertainment – but they also serve a higher good as places of social connection.

“Beyond their practical functions, districts also play a crucial role in fostering social connections, strengthening local networks and reinforcing a shared sense of identity and belonging among residents,” says Rammal, who is a partner at Roland Berger in its Dubai office.

“When properly maintained, cities not only enhance social cohesion but also create a fertile environment for economic growth and community resilience.”

But when urban decay begins to impact a district, developments such as unemployment, crime and pollution can grow. Such urban decay negatively impacts the people living in cities, and on the longer run, contributes to an overall declining standard of living.

“Urban decay appears to be a universal phenomenon,” notes Rammal. “There are many interconnected factors that can cause decline –  and as with any complex issue, the solutions are also complex.”

The warning signs

Mostly, urban decline sets in gradually, meaning that planners and policymakers can forecast and mitigate issues through a system of monitoring and early warning signs. “Identifying early warning signs is a crucial basis for timely action to prevent further deterioration,” Rammal notes.

One of the first warning signs that is often seen in cases of urban blight are shifts in population size, wherein residents begin leaving an area lacking services and quality of life, or when urban sprawl brings large numbers of people to the surrounding areas of a city. “These population shifts can weaken local economies, diminish social cohesion and accelerate the deterioration of urban infrastructure.”

One illustrative example of this is Santiago, the capital of Chile, one of the largest cities in the Americas. “Urban decline in the central neighborhoods of Santiago was foreshadowed by a significant residential shift that began in the late 1990s,” explains Rammal.

“During this period, the steady migration of residents from the city center to peripheral districts led to a dramatic population decrease in central areas, while the population of the Santiago Metropolitan Region continued to grow strongly – as it had since the 1950s. Over time, this movement resulted in a 50% decline in the number of inhabitants in the central areas, contributing to their gradual deterioration.”

Rammal points to similar shifts in population in various other cities, which saw rapid influxes of lower-income residents. That eventually brought down rental prices, and with that, a general decline in the districts.

Other contributing factors

Changes in demographics and the subsequent shifts in the real estate market have a strong impact on communities, but other factors also play a big role. For example, socio-economic shifts caused by deindustrialization can quickly lead to the kind of urban decay that tears apart the fabric of a community.

Another example was seen in the city of Bilbao, Spain, hit hard by an economic crisis in the 1980s when key industrial business activities disappeared and the unemployment rate soared from a mere 2.5% to around 26%.

“The effects of this economic collapse rippled beyond the job market, influencing urban planning and reshaping the metropolitan landscape. Large industrial zones were left abandoned, and inefficient land use practices became widespread,” notes Rammal.

Transformative change

While it can be hard to pin down the exact causes of these various interconnected urban problems, there are a number of possible ways to approach finding a solution that works. Rammal cites two examples from the region.

The first is the Old Al Ghanim district in Doha, Qatar, one of the city’s oldest neighborhoods, which features traditional architecture. Over many years of rapid urban development, many of the original inhabitants left the area.

A revitalization effort was undertaken to preserve the cultural heritage of Old Al Ghanim: infrastructure was improved, redevelopment was coordinated by involving the community, and the urban environment was made more sustainable.

In another case study, Riyadh, the Saudi capital, suffered from problems related to a remarkable increase in population over a relatively short period of time. Some central districts of the city saw big demographic shifts and declining property values.

“Local authorities have responded proactively to the challenges of urban decline by launching district regeneration programs aimed at revitalizing Riyadh’s historic and underutilized areas,” explains Rammal. “These interventions aim to reverse urban decline, stimulate economic activity and position Riyadh’s central districts as competitive, high-value urban destinations.”

The solution for Riyadh has been to focus on conserving architectural heritage, upgrading infrastructure and mobility, elevating the public realm by creating more green areas and walkable spaces, fomenting public-private partnerships, and addressing local resident and businesses with inclusive growth.

“Ensuring the health and vibrancy of districts and neighborhoods – the lifeblood of a nation’s social fabric – is crucial for enabling social cohesion and promoting economic growth,” says Rammal.

Regeneration planning

While numerous parties play a role in regeneration, governments should sit at the helm of district regeneration efforts, emphasizes Rammal. “They oversee the masterplan and ensure that urban regeneration initiatives focus on both economic and social improvements.”

They also act as the safeguard of cultural values, ensuring that development goes hand in hand with protecting cultural heritage, which is a great asset in its own right.

Meanwhile, governments should also oversee alignment with other areas that cross sect regeneration and risks. Rammal highlights gentrification and displacement as examples, advising policymakers to keep a close eye on policies that safeguard affordable housing options and protecting vulnerable populations.

“In conclusion, the key to combating urban decay is an understanding of its root causes and an ability to spot the early warning signs. Action should be based on a clear vision, a commitment to preserving cultural identity and – vitally – the inclusion of local stakeholders, supported by an environment that encourages participation by private players.”

 

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