Brownfield regeneration is crucial to solving Europe’s housing crisis

Brownfield development must play a role in enabling urban growth to meet the needs of Europe’s growing urban population, according to a new reportfrom C40, Arup and Urban Partners.

The report sets out to address the traditionally challenging perception of brownfield regeneration by showcasing its potential to enhance housing affordability and curb urban sprawl while delivering attractive returns.

Jesse Shapins, Head of Urban Regeneration at Urban Partners, said: “Brownfield development is a critical, but too often neglected lever for sustainable urban growth. This report shows how choices on housing, transport, decarbonisation and planning will define the future of cities, which are our engines of innovation and growth. By drawing lessons from Europe’s most advanced cities, it provides a clear roadmap for regeneration that can unlock housing supply. The evidence is clear that investing in brownfield development, though complex, is essential to delivering on city leaders’ core objectives while presenting a strong investment opportunity.”

Léan Doody, Arup’s Cities, Planning and Design Leader in Europe, said: “ Urban brownfield regeneration is both a planning challenge and Europe’s biggest opportunity to grow without sprawl. The report gives practical steps — plan for the long term, build trusted partnerships and reduce investment risk through planning certainty — to help cities, developers and patient capital turn complex sites into affordable, lower‑carbon neighbourhoods now.”

Hélène Chartier, Director of Urban Planning and Design, C40 Cities, said: “As Europe’s cities face growing pressure to deliver new homes, costly and carbon-intensive sprawl cannot be the answer. Instead, cities must look inward — to their shuttered factories, obsolete railyards, and underused commercial areas. Regenerating these brownfield sites within the existing urban fabric could meet most of Europe’s housing needs for the next 15 years. Doing so would create vibrant, mixed-use communities, protect vital natural land, and cut emissions. This report is a blueprint for action — showing how cities, investors, and developers can work together today to unlock the green, thriving neighbourhoods of tomorrow.”

Europe’s housing crisis needs urgent action

Urbanisation in Europe has increased at a constant rate since the 1960’s and is expected to continue growing, with approximately 83% of people projected to live in urban areas by 2050. To manage the pressures that this creates, both current and emerging, European cities must adopt denser, more connected, and mixed-use models of urban development.

At the same time, Europe aims to become the world’s first climate-neutral continent, creating a tension between urban development and sustainability. The European Green Deal, for instance, includes interim targets to cut emissions by at least 55% by 2030 compared to 1990 levels. ^[1]
A new model for urban planning and investment

Against this backdrop, the report makes a powerful case for cities to pursue large-scale urban brownfield regeneration to help address their challenges. It argues for a shift to a new model of urban planning with a focus on compact, mixed-use, and transit-oriented neighbourhoods, which prioritises existing central urban areas such as brownfield sites.

The report encourages European cities to adopt a climate-resilient and people-centred approach to planning and design, building on the historical model of European cities, which are compact, mixed-use and walkable. There is an argument for building more housing as part of new “complete neighbourhoods” which require buy-in from all major stakeholders involved in shaping regeneration.

Urban regeneration has traditionally been underinvested, and the exact scale of financial flows into projects has not been transparent. Mid-sized, neighbourhood-scale regeneration projects, each needing €100 million to €400 million of investment, are a major opportunity. It makes sense for more investors and funds to have explicit integrated regeneration strategies, for the benefit of both their bottom lines and wider society.

Simultaneously, brownfield developments present an investment opportunity for institutional investors. As more global capital is targeting European investments—from late 2023 through now, investment flows into Europe rose from $19.7bn to $21.6bn—brownfield development might have better chances in the coming years. This development could in itself be a catalyst for economic growth. For instance, the King’s Cross brownfield development in London, one of three cases in the report, led to 19,000 new jobs created between 2009 and 2019 in an area that is now vibrant and liveable.

Recommendations and key takeaways from the report

• Brownfield developments deliver better value for society. For instance, it’s possible to raise revenue for cities without expanding the urban footprint. Denser developments often lead to more properties and higher value.
  
  
• In Copenhagen, for instance, the redevelopment of Nordhavn provided a significant contribution to the city’s tax revenue. Starting from 2017, the Nordhavn district has experienced a significant growth in the working population, contributing to the sharp rise in income tax seen in Copenhagen which in 2024 amounted to €230 million.
  
  
• City planning must focus on integrating new development into existing urban infrastructure to create compact, efficient cities and prevent outward sprawl.
  
  
• Compact, mixed-use, transit-oriented development improves land use and quality of urban living.
  
  
• Research from Ginkgo: Europe’s housing and workspace needs over the next 15 years equal a €4 trillion investment opportunity in brownfield regeneration.
  
  
• Regenerating part of 19,000 sq km of underused brownfield land and 300 sq km of vacant office space could meet housing demand of 15–20 million homes plus major commercial assets.
  
  
• The UK alone has nearly 30,000 hectares of brownfield land, mostly in urban centres.
  
  
• The European Commission aims for no net land take by 2050, balancing this with housing and economic growth priorities.
  
  
• Brownfield regeneration seen as the solution: density and proximity drive benefits.
  
  
• Evidence: every 1% increase in population density reduces per-capita CO₂ emissions by 0.79% (Oxford Economics, 2023).
  
  

[1]European Climate Law – European Commission