CREATIVE
cities
How the nearby presence of cultural institutions can affect luxury real estate markets
American urban planner and theorist Kevin Lynch observed in 1960 that “as an artificial world, the city should be so in the best sense: made by art, shaped for human purposes.” This credo, advocating for cities to be artfully designed environments tailored to the needs of its residents, has taken on different forms in the years since, but a perennial truth is that substantial cultural investment is an essential element of urban life around the globe.
This notion is also backed by national statistics about the growing importance of culture on society. According to data released in March 2024 by the National Endowment for the Arts and the Bureau of Economic Analysis (BEA), the economic impact of the arts and cultural industries in America, for example, “hit an all-time high in 2022, contributing 4.3% of GDP, or US$1.1 trillion, to the U.S. economy.”
The history of harnessing cultural resources in the service of community-building is long and rich. In major cities such as New York, “luxury residences have built up around cultural concepts such as public spaces, the arts, and restaurants,” according to Stan Ponte, senior global real estate advisor, Sotheby’s International Realty - East Side Manhattan Brokerage. For example, Manhattan apartments near the Lincoln Center for the Performing Arts, opened in the 1960s, remain in high demand, Ponte notes.
Likewise, the High Line, a once-abandoned elevated rail line in the Meatpacking District that was converted into a public park in 2006, studded with rotating sculptural installations by high-profile contemporary artists, “has resulted in one of the most sought-after neighborhoods, with residential prices reaching as high as US$6,000 per square foot in 2024,” Ponte says. In comparison, the average price per square foot in Manhattan in 2024 is US$1,500, according to Realtor.com. “When the High Line opened in 2009, the average condo price was US$1,596,279. In 2023, the average price stood at US$4,345,027,” Ponte adds.
The High Line soon attracted other cultural institutions, such as the Whitney Museum of American Art, which moved into its Renzo Piano-designed building in 2015, and a flood of art galleries, restaurants and shops.
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RESIDENTIAL REAL ESTATE MOVES TO FOLLOW THE CREATIVE DOLLAR
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Daniel Payne, managing principal, AEA Consulting
A breathtaking six-bedroom home minutes from Miami, Florida, where culture has been transformative in recent years.
ONE Sotheby’s International Realty
Most intentionally established cultural districts “start from somewhere,” says Daniel Payne, managing principal, AEA Consulting, a company based in London and New York that set up the Global Cultural Districts Network in 2013, whose members include policymakers, planners, and executives consulting on international development projects. Payne says a respected institution often provides the anchor for a dynamic neighborhood, such as the Brooklyn Academy of Music in New York or the Dallas Museum of Art in Texas. Other public projects, such as Millennium Park in Chicago, Illinois, introduce a different dynamic that generates new real estate value. In Hong Kong, the arrival of the Art Basel fair and an influx of galleries show how “residential real estate moves to follow the creative dollar,” adds Payne.
Cultural events also have the power to attract a wider clientele to the local real estate market. According to ONE Sotheby’s International Realty agent, Elena Bluntzer, the arrival of the Art Basel fair in Miami Beach in 2002, which city officials estimate contributes US$500 million to the local economy, as well as the development of the Miami Design District, have been transformative for the area—especially in the past few years. “Art Basel is a perfect fit for Miami’s eclectic tastes. Many of my clients are serious art collectors, so it's crucial to find properties that complement and showcase their collections. Fortunately, Miami offers an abundance of such homes, making it an ideal market for art enthusiasts.”
The St. Regis Residences Brickell, designed by Robert A.M. Stern Architects, where ONE Sotheby’s International Realty is the exclusive listing partner, is “one of the most exciting, ultra luxury buildings in Miami right now. The architects and the developers have gone above and beyond expectations attracting the most discerning buyers to our dynamic city,” adds Bluntzer.
During Art Basel in Miami Beach last year, artists Caitlin Lonegan and Jongsuk Yoon even displayed their works in the building’s Sales Gallery.
To gauge the effect new or existing cultural institutions can have on the price of residential real estate, we asked six Sotheby’s International Realty leaders from cities around the world how the presence of galleries, museums, and other venues have had an effect on their local property markets.
Doha
The country’s sustainable development plan, Qatar National Vision 2030, was enacted in 2008, and the capital has been swirling with activity ever since. “The focus on art, education, and architecture is not just transforming the physical skyline of Doha but also enriching its cultural fabric, positioning the city and country as a beacon of innovation in the region and beyond,” says Zhanna Yerkozhanova, general manager, Qatar Sotheby’s International Realty.
Cultural initiatives and residential real estate are a compelling symbiotic formula. Msheireb Downtown Doha is one such mixed-use development that, Yerkozhanova says, “combines traditional Qatari heritage with modern design and sustainability principles.” The inaugural Design Doha biennial launched in February 2024, and destinations such as the National Museum of Qatar—designed by Jean Nouvel and opened in 2019—have further advanced the various Qatar Museums projects led by Sheikha Al-Mayassa bint Hamad bin Khalifa Al Thani under the patronage of her brother, the Emir of Qatar.
“We are investing in nothing less than a complete cultural infrastructure,” says Ahmad Al Namla, chief executive officer, Qatar Museums, in a promotional report published through The Wall Street Journal. “Since 2008, we have launched four new world-class museums, with another four in development; built incubator hubs for emerging artists and creative entrepreneurs; and strengthened cross-cultural cooperation through the bilateral Years of Culture initiative. We have also established exhibition galleries and events, preserved UNESCO World Heritage Sites, and installed 100-plus works of public art.”
While real estate transactions totaled US$4.6 billion in 2023, this was a decrease from the amount seen during 2022, when the excitement around the World Cup helped push transactions up to US$5.8 billion, according to a report issued in February 2024 by local company Hapondo. But investment in rental properties remained strong, according to data gathered by the Real Estate Registration Department of the Qatar Ministry of Justice, with sales of residential units totalling US$754 million in 2023, a rise of 82% from the year before, when they made US$414 million. The average price for residential properties also increased by 26% over the same time, from US$576,000 in 2022 to US$724,000 in 2023, according to the government figures.
“While the quantitative impact of cultural institutions on real estate values in Doha might vary, their overall contribution to making areas more attractive for high-end real estate investment is significant,” says Yerkozhanova. “The proximity to these institutions is more than a ‘nice to have,’ it is an asset to both the tangible and intangible value of luxury real estate in the city.”
Full of natural light, this contemporary property, located south of Mexico City, Mexico, has high ceilings and marble floors.
Mexico Sotheby’s International Realty
Mexico City
It sometimes feels impossible to open Instagram without spotting swoon-inducing images of lush, plant-filled living spaces outfitted with cutting-edge interior design and art in Mexico City. The country’s capital is clearly on a hot streak, infusing yet more verve into its already robust art and design scene.
The international clientele served by Mexico Sotheby’s International Realty agent Mirari García Alcocer are drawn to Polanco, as well as the hip hubs of Colonia Roma and La Condesa. “In Polanco you have shops, entertainment, theaters, and a lot of affluence,” she says. It’s near the city center but offers a breather from the intensity of Centro Histórico. García Alcocer points to the prestigious, leafy Polanco streets of Campos Eliseos and Rubén Darío as commanding the highest sales figures, ranging from US$836 to US$1,114 per square foot in 2024, given their proximity to Chapultepec Park, the National Museum of Anthropology and the Museo Tamayo of contemporary art.
Two attention-grabbing newer attractions—the Museo Soumaya, which houses billionaire Carlos Slim’s extensive collections of art and antiquities, and the Museo Jumex, a wide-ranging collection of contemporary art—are about 3km away in what has been dubbed Nuevo Polanco. With recent figures hovering at approximately US$275 per square foot in 2024, properties in this up-and-coming area don’t command as high a price just yet, and so pose appealing investment potential, García Alcocer says.
She believes these major cultural institutions have enhanced Mexico City’s appeal, as has the burgeoning art gallery cluster in San Miguel Chapultepec. “For some people, nearby cultural landmarks are a significant factor that can influence their choice of neighborhood or property. For others, they are viewed as desirable amenities within a wider urban ecosystem.”
Singapore
Global finance and cultural heritage thrive side-by-side in the carefully planned capital of the city-state. The future seems to have already arrived at cutting-edge sites such as the Marina Bay Sands resort, Marina Bay Financial Centre, and within the horticultural splendor of the Gardens by the Bay nature park—which is part of Singapore’s signature “garden city” vision of sustainability through livable density, first introduced by Prime Minister Lee Kuan Yew in 1967. Today, almost 50% of the city is devoted to green space, according to the government, and its ambitious Green Plan aims to make 80% of Singapore’s existing buildings eco-friendly by 2030.
Meanwhile, in the Civic District, prioritizing adaptive reuse and sensitive conversions have ushered in new chapters for the former City Hall and Supreme Court, which have been transformed into the National Gallery Singapore. In 2004, the Old Parliament House, built in 1827 and one of the oldest buildings in the city, became The Arts House, a venue for exhibitions and concerts. Similarly, Gillman Barracks is a cluster of contemporary arts organizations housed in a former military barracks that was built in 1936.
New projects include a Singapore outpost of Japan’s Whitestone Gallery and the New Art Museum Singapore, which share a 20,000 square feet building designed by architect Kengo Kuma—the largest art space in Southeast Asia, according to the organizers. Kuma is also co-designing a new Founders' Memorial in the Bay East Garden with the local firm K2LD Architects, which is due to be completed in 2028.
Culture is an important pillar of society for the Singaporean government, which released an updated Heritage Plan in July 2023. According to the report, the country’s National Heritage Board, “recognizes the economic potential of heritage and aims to use it in order to invigorate Singapore’s cultural industries and boost our cultural capital both at home and abroad.”
Nancy Tey, senior associate vice president, List Sotheby’s International Realty, Singapore, says recent government efforts to incentivize more housing construction in Singapore’s Financial District means “it remains vibrant and lively at night and on weekends.” She adds that “there is a strong rental market in the city, as expatriates prefer to live close to their place of work and to places of interest and entertainment.”
While the price of private housing in Singapore is closely regulated through government policy to maintain stability, says Lewis Cha, executive director, List Sotheby’s International Realty, Singapore, “connectivity to amenities—whether cultural or commercial—would tend to increase the appeal and value of well-constructed residences that are within proximity.” This may be why prices for private homes in Singapore have steadily risen in recent years, climbing by 1.5% in the first quarter of 2024, compared with the previous three months, according to estimates released by the country’s Urban Redevelopment Authority.
Hong Kong
As Art Basel, Art Central, and Sotheby’s Hong Kong Sales converge at the Convention and Exhibition Centre every spring, the city experiences an invigorating charge. This energy, however, isn’t limited to one particular season. May Teng, business development manager, List Sotheby’s International Realty, Hong Kong, says momentum has been building as “blue-chip galleries and new auction houses open in landmark locations.”
This year, Sotheby’s auction house in Hong Kong will move to a new headquarters at Six Pacific Place and open a 24,000 square feet maison at Landmark Chater. The West Kowloon Cultural District is already solidly on the map, with the ambitious M+ museum, which opened in 2021, and the new Hong Kong Palace Museum.
Teng cites strong interest in the Harbourside towers in West Kowloon as an example of how proximity to a cultural and business hub drives up prices. During the first quarter of 2024, the building marked a record sale at over US$13.5 million, Teng says, translating to more than US$7,700 per square foot, while the average transaction for the three-tower complex constructed above Kowloon Station lands at around US$4,300 per square foot.
The city’s recently changed fiscal policy is another key factor. In February 2024, says Teng, the Hong Kong government “scrapped all ‘property cooling measures’ with immediate effect.” This means that three separate stamp duties levied on property sales have been abolished. “We welcome all international buyers to invest in property in Hong Kong, including global art collectors and investors who value international opportunities, luxury, art, and lifestyle,” she adds.
Los Angeles
“For high-net-worth buyers, the world’s playground is in Los Angeles. Three hundred days a year we have beautiful weather,” says Marc Noah, real estate advisor, Sotheby’s International Realty - Beverly Hills Brokerage. In recent years, Los Angeles has also become a cultural metropolis, with the arrival of the Frieze art fair in 2019 boosting the development of the gallery scene.
A restoration of a 1920s iconic Mediterranean masterpiece originally built for the American golfer Clement E. Smoot, in Los Angeles, California.
Sotheby’s International Realty - Los Feliz Brokerage
In the Mid-City area, a much-anticipated building designed by Peter Zumthor to house the David Geffen Galleries of the Los Angeles County Museum of Art (LACMA) is slated to open later this year. This will join the museum’s existing buildings by Renzo Piano, the Italian architect who has also made a significant imprint next door at the Academy Museum of Motion Pictures, which debuted in 2021.
LACMA’s permanent public art installations, including Chris Burden’s “Urban Light,” 2008, which the Los Angeles Times has called one of the “city’s most popular landmarks and tourist attractions,” have already transformed the foot traffic in the area, making the stretch of Wilshire a regular stop for visitors and Instagrammers.
Noah still sees the highest demand for luxury properties in the famed 90210 Beverly Hills zip code, where the average price per square foot is US$1,487, compared to a city-wide average of US$718, according to Realtor.com. He says that living near LACMA and the Petersen Automotive Museum in communities such as historic Hancock Park and Beverly Grove “is a benefit buyers get, but it’s not the only driving force.” He adds: “You get a great neighborhood, walkability, and a convenience factor.”
In a decentralized city such as LA, the presence of these institutions and other destinations, such as the Getty Center in West LA and Downtown’s Broad Museum and the Museum of Contemporary Art, help to anchor their neighborhoods, attract visitors, and nourish the general cultural climate. “Downtown has changed because of cultural districts, and MoCA has been there 30-plus years now,” Payne of AEA Consulting observes about LA. “Disney Hall and the Broad opened and that’s created some changes to the environment there.”
Dallas
Covering 118 acres of downtown Dallas, the Dallas Arts District is the largest contiguous urban arts district in the nation, according to the non-profit organization that manages its development. The district dates its foundation to 1984, when the Dallas Museum of Art opened its Edward Larrabee Barnes-designed building, and since then a number of significant cultural facilities have joined the neighborhood, including the AT&T Performing Arts Center, a US$354 million campus that opened in 2009 and includes an opera house, a 12-story theater, a public park, and 2,500-seat outdoor performance space.
More recently, a number of luxury residential high-rises have cropped up, such as Museum Tower, which was exclusively represented by Briggs Freeman Sotheby’s International Realty. The company is also the exclusive brokerage for the Hall Arts Residences, a 28-story tower overlooking the Dallas Arts District that includes just 49 luxury homes, including three penthouse apartments.
“Hall Arts Residences has—quite literally—pushed the height of luxury to new levels in the Dallas condominium market,” says Kyle Richards, real estate advisor, Briggs Freeman Sotheby’s International Realty. “It is also the first building in Dallas to achieve across-the-board sales at more than US$1,100 per square foot, during phase one of the project. The newly unveiled Masterpiece Collection—the last new homes available, on floors 20 through 25—is averaging more than US$1,300 per square foot. Two full-floor, custom-designed penthouses are being offered at an average of more than US$2,500 per square foot.”
Comparatively, the average asking price for a condominium tower apartment in Dallas is US$560 per square foot, Richards says, and the average sold price is US$460 per square foot. “The average sales price for all condominium sales activity in Dallas County is US$300 per square foot,” Richards says. “That goes to show the importance of putting an emphasis on services, amenities and quality finishes in a superior location, such as the Dallas Arts District.”
As these locations show, cities shape their inhabitants, and vice versa. This reciprocity can reach its most dynamic potential when eager audiences have easy access to forward-thinking institutions, which in turn become part of the fabric of everyday life. That’s artful living, indeed.
his custom-built Texas residence is a masterpiece of architectural ingenuity and meticulous planning.
Briggs Freeman Sotheby’s International Realty