Culture is a critical driver of economic value for places and developments. From initial planning to completion, cultural initiatives can transform spaces, enhance community, and stimulate economic growth.

Jonathan Todd explores three ways we see culture builds economic value, highlighting external value of cultural events, regeneration of under underutilised areas, and the impact of activitating iterim spaces. 

1. Creating External Value: Major events like the Edinburgh Festivals show that cultural events significantly boost local expenditure beyond the events themselves.

2. Catalysing Regeneration: Cultural developments, like V&A Dundee, accelerate regeneration and have nationwide impact.

3. Activating Interim Spaces: Initiatives like NDT Broadgate show that meanwhile use offers high returns on investment and provides crucial space for artists.

Edinburgh Festivals

Edinburgh’s year-round programme of festivals, crucial to the city's life since 1947, have been pivotal in Edinburgh’s strong recovery from COVID-19. In our recent report we found that the economic impact increased from £280 million in 2015 to £407 million in 2022.

Notably, over half of the additional expenditure was on accommodation, showing that cultural events stimulate external spending across various sectors and not just within the event itself. This plays into debates around who captures the value from culture and the most effective means of reinvesting in culture to sustain these impacts long term.

V&A Dundee

Cultural assets give momentum and direction to broader regeneration and placemaking initiatives. V&D Dundee, for example, is a vital catalyst of the ongoing transformation of Dundee’s waterfront. The design museum is an iconic building, attracting visitors and additional investment to a city combatting significant economic and social challenges.

We chronicled and analysed the impact of the museum’s first five years, working closely with this new organisation, consulting widely across its partners and stakeholders, and generating insights on V&A Dundee’s impact in Dundee and Scotland. These findings included a £300 million contribution to Scotland’s economy, with over £100 million to Dundee.

British Land, New Diorama Theatre and NDT Broadgate

Culture’s adaptability means it can also add value in difficult circumstances. For example, the New Diorama Theatre and British Land’s initiative at NDT Broadgate in the City of London has been a contributor to the supercharged recovery of freelance artists post-pandemic .

Building on the success of their long-term partnership at Regent’s Place, together they launched one of the UK’s biggest and most accessible arts hubs. New Diorama Theatre transformed two office floors at British Land’s Broadgate campus in central London to create NDT Broadgate. This large rehearsal and artist complex was free for independent artists to use, addressing long-term issues around access to space in London. BOP reported an impressive return on investment, with an initial £0.8 million investment generating £40 million in economic growth. Highlighting how activating temporary space with cultural activities can have lasting impact on the surrounding area.

Culture as an Anchor

As new cities start appearing across the world, culture has a key part to play in planning. Understanding the economic power of culture in property development is crucial. These case studies show that cultural initiatives do more than add colour to an area; they drive significant economic growth, rejuvenate, and foster vibrant communities. By integrating culture into development projects, we not only create more appealing environments but also unlock substantial economic value and long-term sustainability.