The public sector is a steadily growing factor in modern society and the economy.
In the course of this growth it has acquired positions in urban planning. Hospitals, psychiatric institutions, rehabilitation centres and schools, built at the edge of towns for reasons of land availability and land prices, have subsequently seen those towns grow around them. These areas have thus come to occupy more central locations, with a considerable increase in the value of those areas as a result.
The existing buildings and structures are often difficult to adapt for new contemporary use without substantial investment. From a cost perspective, it is generally more efficient to demolish the existing construction and to start again from scratch. However, precisely the architectural and urban design qualities of the existing premises are attractive to market parties. Today, this awareness in conjunction with the value increase often prompts the sale of some of the premises for private development, with the proceeds then applied to finance the renewal of the rest. This compels a denser use of the remaining space and restricts any further growth, or the eventual relocation of the facilities to new areas at the town periphery.
As a result of the recent financial crises, there is a growing awareness that the economy requires more regulation, should be geared more to sustainability, and should focus less on short-term interests. The public sector is thus emerging as a stable driving force of local economy, not least of all due to its stimulating effect on small-scale associated enterprise.