Whether walking down the streets of Berlin, Brussels, London, Reykjavík, street art is used to mark spaces and buildings in unique, surprising, and in often joyful ways. It functions as a profound communicator of the social and cultural fabric of a city.

It was in a conversation with Moritz Tonn from No Unicorn Yet, a comms agency for sustainable development across Europe, that got me thinking about the ‘social value’ of street art. As part of my work on ESG across real assets, I’m interested in how companies can contribute social value to places and communities.

So what is it about street art? And what value might it have?

We know that street art can be used to beautify areas and be a powerful medium for community expression and dialogue. It can support the physical sustainability of assets through improving the liveability of areas.

And the question of social value is an interesting one. There can be direct or indirect economic value attributed as well as social and cultural value (Forte et al, 2019; Garlick, 2020; Kolçak et al, 2022) .

We see this with the work of the Urban Nation initiative by the „Berliner Leben” Foundation. The Foundation focuses on creating and enhancing liveable neighbourhoods in Berlin. Over a decade, this project transformed a somewhat rundown district into a trendy residential area. It did this through the strategic use of street art and the establishment of the world’s first street art museum, Urban Nation.

For Moritz, who lives in Berlin, this revitalization brought renewed energy and community pride to the area, turning previously overlooked spaces into vibrant centres of cultural exchange and social interaction. The project not only beautified the neighbourhood, it stimulated the local economy and enhanced residents’ quality of life by making art accessible and fostering a sense of belonging and community.

Beyond direct economic contributions, street art can demonstrably transform public spaces and play an important role in community building (Artery, 2024). The role of street art in bringing areas to life and supporting community cohesion has an increasingly important function, not least of all given polarisation trends across Europe.

In addition, art in public spaces broadens the understanding of real estate and its significance for communities. For example, murals that enhance typically grim intersections  can tie together assets at neighbourhood level. This can support the revitalisation of areas and have knock-on consequences in increasing asset value. 

The case for investment

What does this mean for the social value component of ESG across real assets? And what is the potential ROI?

By way of background, social value broadly refers to the benefits that an organisation can deliver to society through its activities and supply chain. It is a topic that has rapidly moved up the agenda. It is now a core consideration in ESG and investment decision making at global, national and local levels. And companies are increasingly considering their own ESG position/social value contributions. In countries such as the UK, it is embedded into government procurement via regulation. 

In thinking about street art and social value, it could be considered in two contexts – the use of space and/or boardings during vacancy and/or development; and more permanent art.

In terms of temporary displays, vacant lots and construction sites can be grim and attract antisocial behaviour. Street art done well can enliven these spaces as we see in the case of Wandelism in Berlin. It can also offer the opportunity for pop-up venues that can bring local artists and communities together.

In terms of more permanent displays, there is the real potential to support local communities and make spaces more attractive for occupiers. Increased use of the public realm can have a range of benefits – from improving street safety, reducing social isolation, and provide tourism and new jobs to areas (Dhenin, 2021). Combined with these factors, it shouldn’t be surprisingly that if done well, it can lead to higher returns for developers and asset owners.