What’s a Brownfield Project ? Development Process with Project Examples

brownfield-project

In urban planning, Brownfield is a term that is used for land which has been used earlier but is no longer widely used. These types of lands are contaminated by industrial or hazardous waste and suffer oil contamination. A brownfield project is a land that was earlier used for commercial purposes, however, at present does not serve any purpose. Specifically, these types of land are present in the western countries which have been the center of oil refineries, gas stations, or railroads.

The Process of Brownfield Project Development

Now that you know what the Brownfield project is, here’s what you need to know about the process:

  • The site which can be redeveloped is identified
  • Analysis of potential redevelopment
  • Creating a master plan for the desired Brownfield Project
  • Property clean-up or what is termed as remediation and use of biochemical treatment for cleaning the property.

Brownfield Project Example

  • Conversion of the Mumbai International Airport to a redevelopment project from a Brownfield Project.
  • Acquiring the government quarters in the area of East Kidwai Nagar to develop it into a modern site.

Why are the Brownfield Development Project Sites Given Preference?

If the land is not used for a long period of time, it gets degenerated hence, the government authorities plan to regenerate and develop that land to avoid it from getting wasted. But it is always costly to get a brownfield site fit for regeneration because the companies have to bear the expenses of getting the waste out of the site and getting      the needed permissions from the government. Also, the builders need to hire the best technicians to completely remove the contamination from the Brownfield site. At times, the contamination can still be there and lead to environmental pollution.

Difference between Greenfield and Brownfield Sites

Greenfield

  • The sites which did not have existing construction on them or have not been previously used are the greenfield sites.
  • Greenfield Sites are often found in the countryside or rural areas.
  • It is not quite sustainable to use the greenfield sites because of the rural-urban fringe.
  • These sites are usually on the edge of cities and towns, which leads to less congestion and better access.

Brownfield

  • The sites which were constructed previously are the Brownfield project sites.
  • Brownfield sites are often found in urban areas.
  • It is sustainable to develop a brownfield project because it mitigates the pressure on the greenfield sites.
  • It is easier to provide modes of transportation in densely populated areas or central areas.

Advantages of Brownfield Project Sites

  • Brownfield sites can get development permissions easily.
  • It is economical because it does not require access to roads or drainage systems.
  • Brownfield sites do not lead to city expansion, as they are already present in the central areas.

Disadvantages of Brownfield Project Sites

  • It is expensive to purchase a brownfield site.
  • There is not much space for gardens.
  • The choice of the building is restricted.
  • The original use of the land needs to be completely cleared.

Important Real estate Terms You Should Know

built-up-areaWhat is built-up-area
Debt to Income RatioWhat is Debt to Income Ratio
Super Built-up AreaWhat is Super Built-up Area
Annual Statement of RatesWhat is Annual Statement of Rates
Fixed Rate Home LoanWhat is a Fixed Rate Home Loan
Written Down ValueWhat is Written Down Value
CrowdfundingWhat is Crowdfunding
National Building CodesWhat are National Building Codes
Building Bye-LawsWhat is Building Bye-Laws
Construction LoanWhat is Construction Loan

FAQs

What are brownfield sites used for?

Brownfield sites are usually used for urban planning.

Why is brownfield better than greenfield?

Brownfield sites are better than greenfield sites because it lifts the economy by providing jobs and boosting property prices.

What is a brownfield project in oil and gas?

It is the site where there is evidence of existing contamination due to any gas or oil production.

What is a brownfield asset?

A brownfield asset is a place that has previous investments but has not been used properly.

What is brownfield investment?

It is an investment where the government purchases or takes land on lease which has been used for production earlier and is now used for new production.

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