Nowadays people are doubting the necessity of vast expenditure on restoration works of historical buildings, whereas it is claimed to be more beneficial as if it was spent on development of road infrastructure or creation of new households.
It is a worldwide practice that old housing is being restored in vast majority of cities. It became crucial for mayors to cope with aging of buildings, since taking this process out of control may cause injuries of the citizens. Moreover, old town of the city is an attractive point for tourists sightseeing and is quite beneficial for the local authorities when it is in a good condition because it will refill the budget.
On the contrast, we must admit that city is a dynamically expanding organism which is always seeking the cure to solve traffic and housing issues. Some buildings are not cost-effective to be restored, so it would be more beneficial for city to build new housing from scratch using that blank space. Another point for budget expenditures relocation towards road development is that road expansion may benefit in the cities GDP as it boosts traffic in and out of the capital including level of citizens happiness.
If I was in a position to choose under such circumstances I would prioritize expenditures that are more likely to pay back the budget, since it will increase cash inflow, which will be then spend on restoration of the city.