Cultural, green, flexible spaces: quality of life is essential for FDI

Well-planned real estate infrastructure signals to investors that a region is ready to support business expansion. Courtney Fingar reports on a recent panel discussion.

Real estate investment and development play a significant role in attracting foreign direct investment (FDI), as they provide the physical foundation for business operations, sustainable economic growth and attracting talent.

Well-planned real estate infrastructure, including commercial facilities, innovation districts and residential areas, signals to investors that a region is ready to support business expansion.

This infrastructure supports sector-specific hubs, such as technology or finance, fostering clusters that increase regional competitiveness. By prioritising quality of life – cultural, green and flexible spaces – real estate developments can attract skilled professionals, a critical component for businesses considering expansion.

Strategic public-private partnerships, like those  in cities such as Eindhoven and Manchester, enhance these efforts by aligning real estate projects with local economic priorities. Sustainable practices, like brownfield redevelopment, integrate ESG considerations, aligning with investors’ modern requirements.

This was the focus of the Real Estate Investment and Development as a Catalyst for Foreign Direct Investment panel discussion hosted by Real FDI at EXPO Real. It brought leaders in economic development together to explore how real estate supports FDI strategies.

‘High-tech industry is not only an industry of engineers and smart people but also a very blue-collared city.’

Stijn Steenbakkers, Mayor of Eindhoven

The discussion highlighted how strategic real estate planning, innovative housing solutions and sustainability considerations are crucial to building resilient, attractive investment ecosystems across high-growth cities and regions.

Jens Manke, director for Germany and Central Europe at FDI consultancy OCO Global, highlighted that, for investment promotion agencies (IPAs) across Europe, the challenge is not only finding land, but offering it in a timely and strategic manner. Germany faces long development timelines, underscoring the need for IPAs to align land availability with investment attraction goals. “You can’t react in a reactionary way,” he explained, emphasising the necessity for pre-emptive planning.

Addressing ESG trends, Manke pointed to brownfield redevelopment as a sustainable approach that also meets FDI requirements, as it focuses on repurposing existing sites rather than new developments.

Need for housing

Stijn Steenbakkers, deputy mayor of Eindhoven in the Netherlands, explained that the city’s growth has been driven by tech giants like ASML and Philips, creating a need for housing to attract and retain talent.

“The thing which is very important to boost that economic development is people – just finding the right talent,” he said. As a part of the Brainport region’s strategic plans, he highlighted a goal to build 100,000 homes in the next 15 years.

This ambitious housing initiative is part of a public-private partnership, with leading companies like ASML participating in a €245 million fund aimed at accelerating the availability of affordable housing. “High-tech industry is not only an industry of engineers and smart people, but also a very blue-collared city,” Steenbakkers said.

The initiative reflects an inclusive growth model that aims to support both highly skilled professionals and the broader workforce that sustains the city’s industrial ecosystem.

Joe Manning, managing director of Midas, Manchester’s inward investment agency, discussed the city’s transformation in the context of a public-private approach to creating diverse real estate options. Manchester’s innovation district offers flexibility, catering to everything from small start-ups needing flexible space, to large-scale regeneration initiatives in partnership with institutional investors, like the City Football Group.

“It’s not a one-size-fits-all,” Manning noted, emphasising the need for adaptable spaces across sectors.

‘Germany’s North Rhine-Westphalia is already an innovative region, but transformation is still ongoing.’

Anne Eberhardt, NRW.Global Business

Anne Eberhardt, project manager of commercial sites at NRW.Global Business, the inward investment agency for Germany’s North Rhine-Westphalia state, provided a regional perspective on the role of real estate in transformation, particularly in the context of shifting economic landscapes and sustainability.

Facing a major transition with a planned coal phase-out by 2030, Eberhardt highlighted the region’s efforts to repurpose industrial sites to maintain economic vitality.

“We already are in an innovative region, but transformation is still ongoing,” she noted, adding that these coal-connected sites will be ripe for new development, providing opportunities for brownfield projects which bring an ESG edge to regional investment.

Aligning housing and commercial needs

Eberhardt also recounted how her agency works with local development and planning teams to align housing and commercial needs with broad investment goals, creating a “starting point for transformation to an innovation hub.” Her focus on aligning site development with sectors like green energy and digital technology demonstrates a targeted approach to FDI that’s in line with the needs of a more diverse, resilient economy.

Pálmi Randversson, managing director of the Keflavik Airport Development Company, known as Kadeco, shared Iceland’s 25-year master plan around its central airport, a key hub, given the significant tourism influx to the country. This plan focuses on sustainable development to support economic diversity beyond tourism, though, as Randversson noted, this requires careful collaboration across government, local communities and businesses.

Quality of life is now an essential attribute for FDI, and speakers agreed on the importance of well-rounded urban development. Randversson emphasised the role of cultural amenities, green spaces and sports infrastructure.

“If you want a good investment climate, it’s not only about growth, but also quality,” he said.