Going green is the new norm in the real estate sector as the race to cut long term carbon footprint heats up. Green properties are increasingly cropping up around the world has become as developers look to leverage their synergies in addition to conserving the environment.
Green Property Standardization
In the race for a more sustainable world, the way buildings are constructed has drastically changed. Green building practices have become the standard in most countries wary of the impact of climate change and global warming. Developers are not only shifting towards green properties given their competitive advantage but also as a way of cutting down on the high-carbon asset class.
The fact that these properties can generate higher rents as sustainability becomes an important aspect of people’s lives explains why they are becoming popular. Likewise, green properties boast of higher returns at the back of low operating expenses.
Likewise, green properties are becoming increasingly popular as most of them tend to be more liquid than normal buildings. In addition, they are proving to be more resilient to technical and operational obsolescence.
Singapore is one of the country’s leading the charge in the race for green properties. Over the past decade, more than a third of buildings constructed in the island nation have come up with eco-friendly material. Developers have also incorporated measures that enhance energy and water efficiency in addition to creating healthier outdoor spaces.
Green Property: A Global Shift
Developers are not the only ones fuelling the green property charge. Tenants, as well as businesses that advocate for corporate social responsibility, are also playing a role in fuelling the drive. Governments are also coming in handy, by leasing spaces in properties with green building certifications. Public sector events are also increasingly being held in green mark certified zones.
Europe continues to lead the pack when it comes to the green properties revolution in the real estate sector. The region has ramped up efforts to make sustainability reporting efficient and transparent. The U.S is also playing its role in combating climate change by encouraging the construction of green properties. Organizations such as ULI and Building Owners and Managers Association are all emphasizing the need for sustainable buildings.
Regulations For Sustainability
At the international level, regulations designed to fuel the sustainable building drive are also cropping up. A number of countries are signatories to the Paris Agreement passed in 2015 have agreed to work together and curb global warming.
Real estate is one of the sectors that the signatories are increasingly looking at as part of an effort to combating global warming. As it stands, investment buildings consume about 40% of the world’s total energy leading to 30% of annual GHG emissions.
Part of the effort of combating emissions from buildings involves the use of innovative processes and technologies to help militate against the obsolescence of most buildings. Likewise, the use of advanced technology, as well as environmentally friendly material, is helping enhance building efficiency and resiliency.
Green buildings are the future of the real estate industry as people become cautious about the environment and aware of the causes and impact of global warming. Likewise, as tenant demand steadily rises, the value of sustainability investment in the real estate sector should be felt far and wide.