Evolution of the Urban Renewal Process into Redevelopment Process as a Failure to Maintain Balance in Public and Private Sector Activities

This study examines the critical role of urban policies and public investments in urban renewal processes, while also attempting to explain the transformation of these processes into real estate development projects. It discusses the decision-making processes that establish the conditions for urban renewal and questions the outcomes created by the shift of urban renewal processes, initially driven by public investments, into the control of the private sector. The research highlights the dynamic interaction between private sector investments and urban renewal, while also addressing the consequences of the diminishing role of the public sector and its failure to provide guidance during the implementation phase. Findings suggest that public sector plans and policies initially played a crucial role in creating an investment-friendly environment, encouraging private sector participation. Urban policies, such as strategic infrastructure investments and public investments, provided a strong foundation for regeneration. However, field work data reveal that the public sector gradually withdrew from its guiding role, leaving renewal efforts largely to private sector interests. This withdrawal led to shifts in focus and project outcomes, resulting in the abandonment of key urban projects and disrupting the intended renewal trajectory. The study underscores the importance of maintaining a balanced public-private partnership in urban renewal processes. It argues that public sector involvement is crucial not only for the equitable disruption of benefits but also to prevent socio-economic segregation. The study concludes that sustainable and inclusive urban renewal requires continuous public sector engagement to uphold its regulatory and guiding roles throughout the transformation process.