Can Green Real Estate give a brand new look By Pratiksha Kapoor
Sustainable real estate development or Green real estate is a gripping new way to make property more efficient.
Green property pertains to arrange of construction techniques that render the state of the art finished structure with natural lighted, indoor air modulating facades with green lushes for temperature controls.
Come 2020, the great migration to the cities will be well underway. Cities in ASIA-PACIFIC region will be swelling multi folds and will compete fiercely with each other. While some cities will develop and thrive, others may still struggle.
As successful cities attract more and more people, so the cost of prime urban real estate will continue to rise. With a fall in affordability, leading to increased urbanization and smaller housing units, developers may seek to adopt green development. Few evidences suggest that green property delivers superior financial returns and market performance.
Developers will become more innovative about how they design and build commercial and residential real estate, seeking to use space more efficiently. And construction techniques ought to involve eco-friendly development.
Refurbishing construction with green features is a technique real estate players need to adopt by 2020 for a secure growth in the market in coming years.
As the world rapidly urbanizes, the pressure to make buildings more eco-efficient is mounting.
Cities contribute an estimated 70% of the world’s energy-related greenhouse gases while occupying just 2% of its land. Their soothing opulent locations and large populations make them particularly vulnerable to the impacts of climate change. Thus, going green is the need of the hour. Though, green real estate for new investors sometimes project 2 percent more to make than the typical traditional property, but growing industry experience continues to drive down costs. Placid, luxurious houses and commercials with sustainable standards enhance estate’s performance in the market due to high appeal to renters and buyers.
Green or sustainable real estate is international and undying
By 2020, it’s likely that all buildings in advanced economies will need to have sustainability ratings. Corporate is also going “green” with its new campuses and buildings across the globe. And this is primarily because it wants to cut down on power and water consumption, to reduce its operational and overhead costs. Green office buildings incorporate renewable energy technologies, waste reduction and greater use of natural light to improve economic, social and environmental performance. What’s more, the concept of sustainability will have a new creative, healthy and energetic working environment for living and working. So, new developments are initiated with a concept to design green spaces, good air quality, spaces for social gathering and so on. Also, turning green helps property owners and backers complying with new rules and regulations being implied worldwide.
For real estate head honchos, the move towards greater sustainability in building design, envisions opportunities and risks. While sale prices do account for buildings’ sustainability framework to a degree through a ‘green premium’, this is currently limited to certain types of prime real estate in advanced economies.
With new government, state, central and global reforms the pressure may increase for and if the buildings’ eco-efficiency mounts faster than the market currently anticipates, then many typical constructions may end up being gimcrack.