Plazas and Squares, and the Local Economy
A Save Festival Plaza Alliance point of view- after Jan Gehl
9/28/20251 min read
A city's plazas and squares act as economic engines for cities when designed and managed well.
Some Economic Roles
Boosting Local Businesses
Plazas attract foot traffic, which benefits shops, cafés, and restaurants around their edges.
People linger longer in areas with comfortable public space, increasing spending per visit.
Case studies (e.g. New York’s Times Square pedestrianisation, Melbourne’s Federation Square) show that retail sales rose after plazas were created or upgraded.
Catalysts for Investment and Property Value
Quality plazas raise nearby property values by improving neighbourhood desirability.
Developers and investors see them as anchors for mixed-use precincts.
In Europe and the U.S., studies have shown uplifts of 10–20% in adjacent real estate after major plaza renewals.
Tourism and Cultural Economy
Iconic plazas (e.g. Plaza Mayor in Madrid, Piazza San Marco in Venice, Federation Square in Melbourne) become destinations that draw visitors.
Festivals, concerts, and cultural programming in plazas generate significant tourism revenue.
Platforms for Events and Markets
Plazas can host farmers markets, craft fairs, food festivals, and cultural celebrations.
These create opportunities for small businesses, artisans, and entrepreneurs, diversifying the local economy.
Employment and Creative Industries
Well-activated plazas require management, programming, maintenance, and design — supporting jobs in events, hospitality, retail, and urban services.
Creative performances (buskers, art installations) add to both the cultural and economic vibrancy of the area.
Reducing Costs, Increasing Resilience
By providing free, accessible gathering spaces, plazas reduce the demand for private venues and can enhance public health (more walking, social connection).
They strengthen economic resilience by diversifying income sources (retail + tourism + cultural spending).
Bottom Line
A good plaza is not just an aesthetic amenity, but infrastructure for economic vitality.
When they are well-designed (comfortable, safe, shaded, flexible) and well-programmed (events, markets, cultural uses), they can:
Drive higher retail turnover,
Anchor new investment,
Support tourism and hospitality, and
Strengthen the identity and competitiveness of a city.