From Principles to Practice DIGITAL

Practical strategies and pathways to action This paper explores how social value and affordability can be integrated into urban development, building on the principles identified in the World Economic Forum’s 2024 white paper, Improving Social Outcomes in Urban Development: A Playbook for Practitioners. It also high- lights practical strategies, drawing on case studies and policy frameworks that help bridge the gap between intent and action. Here, the Alliance seeks to identify key challenges, value drivers, enablers and innovative practices that can advance solutions. The strategies considered must create viable projects in the broadest sense, including the following factors: ▪A significant portion of the work has been completed. ▪It is deemed successful by most stakeholders. ▪It should strengthen the community by advancing social value and affordability outcomes through inclu - sive deliberation among stakeholders. ▪The value created should be long-term, with wide- spread affordability and social value outcomes that are as widespread and equitably distributed as possible.Regulations play a crucial role in shaping the quality, speed and amount of development in a municipality, as well as ensuring long-term benefits. But what regulations have the strongest track records for enabling investment and producing better quality in the living environment and social outcomes? Can deregulations enable inno- vative investment methods that support social benefits without compromising quality? What are the key ena - blers that make these regulations effective? The most impactful regulatory categories identified include land valuation, taxation and ownership; land management; building standards; and regulation through financial incentives. Land valuation, taxation and owner - ship regulations are essential for creating a predictable and transparent environment that attracts investment, building confidence among developers and investors and encouraging high-quality projects. They also create strategic roadmaps to promote affordability and social value. When combined with effective, forward-thinking planning approaches, these regulatory strategies offer the most impactful way to promote affordability and the creation of social value. To this end, the Davos Baukultur Alliance has identified the following regulatory and plan- ning approaches:Regulatory tools 13 12APPROACH 1 Adopt land use regulations that promote affordability and the creation of social value To promote affordability and social value, municipalities can implement targeted regulations that shape land val- uation, taxation and ownership. Regulating how land is valued can help control price increases, ensuring that gains are distributed fairly among stakeholders and the community. Tools such as land banks4 help facilitate redevelopment and community revitalization by allowing broader participation in land value appreciation. Stra - tegic density regulations, including rezoning and land value taxation,5 optimize land use while supporting sus- tainable development. Additionally, incentives such as discounted land costs and access to low-interest loans encourage investment in affordable housing, retrofitting and the revitalization of vacant properties. Long-term affordability can also be ensured through resale restrictions on land developed or acquired with government backing, preventing speculative price infla - tion. Inclusionary housing policies require a share of new development to be affordable, either on-site, off-site or through an in-lieu fee system.6 Local communities can be empowered through pre-emption rights (right to first buy), giving them priority in purchasing and developing land for social benefit. Public land can also be used effectively through leasehold models, where the govern- ment retains ownership while granting long-term leases to developers under quality frameworks that ensure projects meet design, sustainability and social value standards. This prevents speculative resale and aligns development with public interest goals.The following summary presents approaches and innovative practices identified through illustrative exam- ples and case studies. These examples were chosen because they demonstrate how social value objectives anchor projects and shape their approach, aligning strongly with the Davos Baukultur Alliance’s framework for assessing high-quality buildings and places. The case studies showcase multiple approaches in action, recognizing that their combined use, when feasible, will generate greater impact and success – although there may be limitations and challenges to implementing some approaches or they may not be relevant or feasible in every context. The goal is to offer potential proven path- ways to implementation that advance social value. The Davos Baukultur Alliance invites stakeholders at every level to engage in this vital dialogue, ensuring that the places we build today serve as foundations for a more equitable and sustainable tomorrow. Unsplash