Panoramic view of Riyadh, Saudi Arabia

How land-based collaboration can unlock urban regeneration

Cities can move forward even under fiscal pressure. New land-based models show how collaboration can unlock value and shared growth.


In brief

  • Urban regeneration can progress without heavy upfront public spending by treating land as a shared asset rather than a cost.
  • Collaborative, land-based partnership models align public, private and landowner interests to unlock long term value.
  • Cities that combine social outcomes with disciplined delivery are better positioned for resilient growth.

Across fast growing cities, the need to regenerate urban areas has never been more pressing. Population growth, shifting economic patterns and rising expectations around livability are accelerating demand for housing, infrastructure and mixed use development. At the same time, public budgets are under increasing pressure, narrowing the scope for traditional, cash heavy approaches to land acquisition and redevelopment.

Yet constraint does not have to mean compromise. Around the world, cities are discovering that fiscal discipline can be a catalyst for innovation. Rather than slowing regeneration, tighter public finances are prompting new ways of thinking about land, value and collaboration. The result is a more integrated approach that balances growth, social outcomes and long term financial sustainability.

This article explores how land-based collaboration models are reshaping urban regeneration. EY MENA explores how cities can unlock development potential while maintaining a positive, inclusive outlook for communities and investors alike.

From land acquisition to land collaboration

Traditional urban regeneration models have often relied on government funded land expropriation, with compensation paid upfront in cash. While effective in some contexts, this approach can strain public finances and limit the pace and scale of redevelopment.

An alternative is now gaining momentum: treating land as equity rather than as a one time cost. Under this model, landowners contribute their land into a structured partnership — often through a special purpose vehicle — alongside government entities and master developers. Instead of exiting early, landowners participate in the long term value created through higher density, mixed use development.

This shift reframes regeneration as a shared journey. Risks and rewards are distributed more evenly, incentives are aligned and projects are designed with a longer term perspective. Importantly, it opens the door to regeneration even when immediate fiscal capacity is limited, allowing cities to move forward with confidence.

When land is treated as equity and value uplift is shared transparently, urban regeneration can move forward with stronger alignment across stakeholders and clearer pathways to long-term community value.

Why collaboration unlocks more than capital


Land-based collaboration does more than ease fiscal pressure; it changes the quality of outcomes. When landowners, developers and the public sector work within a common framework, regeneration can be designed to deliver economic vitality alongside social sustainability.


Landowners gain flexibility through multiple consideration options, such as replacement units, serviced plots or revenue participation, allowing them to choose outcomes that best match their priorities. Developers benefit from clearer land assembly, phased delivery and defined development rights, reducing execution risk and supporting higher quality outcomes. Governments, in turn, can focus on enabling and coordinating growth rather than funding it alone.


The most successful models are underpinned by transparency and trust. Clear valuation principles, defined governance structures and accessible grievance mechanisms help build confidence among stakeholders and sustain momentum over long project horizons.

 

Capturing value to fund the future


One of the most promising aspects of collaborative regeneration is the use of land value capture mechanisms. As infrastructure investment, zoning changes and densification increase land values, a portion of that uplift can be reinvested into the city itself.


In practice, this may include the sale of additional development rights, negotiated exactions or land readjustment approaches that pool and re parcel land in more efficient ways. Combined with real estate cash flows and, where appropriate, capital market instruments, these tools create a diversified funding stack that supports regeneration without over reliance on public budgets.


When applied thoughtfully, land value capture becomes more than a financing tool. It acts as a bridge between growth and inclusion, helping fund infrastructure, public spaces and community facilities that enhance overall urban quality.

Social outcomes as a foundation, not an afterthought

Urban regeneration succeeds when it strengthens communities as well as skylines. Social sustainability — affordability, access, continuity and opportunity — needs to be embedded from the outset, not layered on later.

Collaborative models make this easier by bringing social considerations into the core economics of a project. Replacement housing, phased relocation and early delivery of essential amenities help reduce disruption and support community confidence. Metrics around displacement, job access and neighborhood satisfaction provide valuable feedback, allowing course correction over time.

By approaching social impact as a manageable design challenge rather than an unavoidable risk, cities can create regeneration programs that are both inclusive and investable.

Unlock new pathways for urban regeneration

Explore EY MENA insights on how land‑based collaboration models can help cities regenerate, grow and deliver shared value.

Delivering with discipline and optimism


Even the strongest model depends on execution. Regeneration projects often span years and involve multiple stakeholders, making disciplined delivery essential. Applying proven megaproject management practices such as milestone based contracting, independent assurance, and outside view forecasting helps protect value and maintain trust.


Crucially, disciplined delivery supports optimism. When stakeholders see steady progress, transparent decision making and credible governance, confidence grows. That confidence attracts further investment, accelerates development and reinforces the virtuous cycle of regeneration.


A positive path forward for growing cities


Urban regeneration under fiscal constraints is not about limiting ambition; it is about unlocking greater value through new forms of participation. By reimagining land as a collaborative asset —where landowners share in long-term value creation — aligning incentives across stakeholders and embedding social outcomes into project design, cities can continue to grow in ways that are resilient, inclusive and financially sustainable.


The full report explores these models in depth, drawing lessons from global precedents and practical experience. For city leaders, developers, investors and landowners seeking constructive ways forward, it offers a roadmap for unlocking urban regeneration even when fiscal space is limited.

Summary

Cities can continue to pursue ambitious urban regeneration by rethinking how land contributes to growth. By moving beyond cash-based land acquisition to collaborative land as equity models, landowners and partners can share in long term value creation while supporting social outcomes and sustainable development. EY MENA explores how land-based partnerships and value capture mechanisms are enabling cities, investors and landowners to move forward with confidence and unlock enduring urban value.

Related content

How artificial intelligence can unlock a new future for infrastructure

To unlock the value of AI and truly transform the infrastructure sector, it must adopt a new mindset, skillset, toolset. Find out how in EY’s new report.

Six ways cities can become more resilient and sustainable

How city leaders can build resilience while achieving their economic goals and improving life for citizens – today and into the future. Find out more.

Nagasaki Stadium City reimagines urban revitalization

In Japan’s Nagasaki Stadium City, a private sector-led megaproject, EY Japan leveraged sports and regional expertise to contribute to success and community impact.

    About this article