Investment in regional digital connectivity is just ‘peanuts’

MIPIM 2019: Investment is digital connectivity is completely inadequate at the moment, according to regional leaders, as they turn to the private sector to future-proof their towns and cities. Members of the Midlands UK Pavilion’s “Digital Connectivity as a Necessity” panel at MIPIM said investment in 5G, high-speed broadband fibre connections, data capture and innovation was required to ensure the regions were not left behind. Louise Brooke-Smith, partner and UK head of development and strategic planning at Arcadis, said: “It’s peanuts, we are miles behind places like Singapore and Dubai, the cities and parts of the world that we really need to be competing with. We have a lot of catching up to do.” Brooke-Smith said R&D and exploration through academia was a start, but added that dedicated finance was needed to drive this forwards. She said: “Will it come from government? Of course it won’t. It will have to come from private partnerships, because that is the way investment will be attracted into an area.” Positive signs Mark Martin, chair of Worcester LEP Business Board, pointed to the £1.1bn government investment to expand the UK’s 5G network and the test bed at Malvern Hills Science Park in partnership with Huawei, BT and Surrey University as a positive sign. However, he said: “We all know that we need to raise our game to become more competitive in the global marketplace.” Martin said improvements were needed, not only to drive regional hubs, but also to ensure this progress was linked to advances in surrounding areas. He said: “The commercial roll-out is easy in cities, but there needs to be a shire solution as well. We can’t have two types of digital connectivity. That will be the big challenge.” This investment translates to occupier premiums, in both commercial and residential space. Radius Data Exchange figures show that occupiers are likely to pay 5% more in rent for London office space with strong connectivity than for similar space without a guarantee of digital performance. Similarly, Martin pointed to findings from his design company, One Creative Environments, which reported a 10% increase on home prices on digital-first flats designed for millennials, complete with electric bikes in place of car parking space and a Zipcar station. “Investors are future-proofing their investments,” said Brooke-Smith. “They are looking for developments, local authorities and partnerships who embrace the same vision.” She said digital connectivity was vital to placemaking, and warned investors would be looking to capture data, keep it secure and use it. Capture is key “The investment for the future is going to be in capturing the data so that we can provide better services – that’s the underpinning side of technology that we need to get our heads around,” said Rupert Parker, head of future-proofing at Avison Young. Parker pointed to WiredScore moving from office building digital certification ratings, to take in digital infrastructure and connectivity, and now moving into residential ratings. But he added that he was worried that the country was not doing enough. Ian Tipton, regional director, Birmingham and Midlands at Stride Treglown, agreed. He said: “The key for us is the massive data footprint that is being established at the moment, and it’s just going to grow and grow. “Historical residential space is disappearing. People want more public amenable space and the ability to tap into data to find out how people are using houses is going to be key.” Tipton said this would have huge implications, particularly in Birmingham, where housing has traditionally been segregated by ages and demographics. “The merging of technology and urbanism is going to play a very large role. The ability to use that data to validate decisions will be huge for us – trying to turn subjective decisions into objective decisions, instead of always bringing things back to the bottom line.” The panel Mark Martin, chair, Worcester LEP Business Board Louise Brooke-Smith, partner, UK head of development and strategic planning, Arcadis Rupert Parker, director, head of future-proofing, Avison Young Ian Tipton, regional director, Birmingham and Midlands, Stride Treglown Chaired by Damian Wild, editor in chief, EG In partnership with EG is proud to continue its role as official media partner at the world’s leading property market event. With a focus on promoting UK investment through a global lens, click here to follow the latest news, read EG’s new investor guides and keep up to date with social media. To send feedback, e-mail emma.rosser@egi.co.uk or tweet @EmmaARosser or @estatesgazette