Sustainable And Green Building Practices In Property Development
- Jimmie Baillie
- Dec 2, 2024
- 3 min read
Introduction
The importance of sustainability and green building practices in the built environment is growing year-on-year. It is therefore important to have an in-depth knowledge and understanding of green building practices prior to embarking on a property development project.
By using green building practices, developers can maximize their returns and reduce their carbon footprint.
Traditionally, the built environment has had a negative impact on the environment and a high carbon footprint. This is as a result of the materials and equipment used to construct and run a property. Building materials such as cement take a lot of energy to be produced. For instance, limestone is one of the primary ingredients in cement. In order to produce cement, the limestone has to be quarried, which can often lead to the destruction of the natural environment. Moreover, the production of cement requires extremely high temperatures, which uses large amounts of energy and emits large amounts of CO2. Once the building has been constructed, the operation of the property can consume a large amount of energy for heating, cooling and lighting. This is especially true for older buildings with outdated systems which are generally less efficient and effective. For example, buildings that are poorly insulated will require more energy in order to heat them and keep them warm. The result of this is that the building’s energy consumption will be much higher than that of a well-insulated building.
Recently there has been an increased importance placed on environmental sustainability as a result of climate change and increased cost of living. The result of this is that businesses and individuals are factoring sustainability into their decision making process. In order to appeal to modern businesses and individuals, property developers and investors are having to ensure their buildings are operationally efficient.
There are several ways in which property developers and investors are factoring sustainability in property development finance projects
Site Selection and Design
The location or a site is an important factor to consider when choosing a property to develop. For example, a site located on the Northeastern side of a mountain is likely to experience cold temperatures as a result of receiving fewer hours of sunlight. As a result of these colder temperatures, this site would require more energy in order to heat the property.
Moreover, the design of a property can also influence the building’s energy consumption. By positioning windows and entrances in strategic locations, designers can ensure that the property does not lose unnecessary heat through design inefficiencies. By taking into account the effect of the natural environment on the operation of a building, design and site selection theories have helped contribute to a more environmentally sustainable built environment. Moreover, by ensuring their building is sufficiently insulated/ventilated, property developers can reduce their consumption of energy on heating/cooling and, in turn, reduce their costs.
Renewable Energy
the integration of renewable energy into the construction and operation of buildings has helped property developers decrease their carbon footprint. By replacing traditional energy sources such as coal or gas with renewable “off-grid” sources, property developers and investors can decrease their environmental impact. One of the ways in which property developers are going “off-grid” is by installing solar panel systems on their roofs. This allows them to reduce their reliance on other sources of energy, which, in turn, helps them reduce their building’s operating costs in the long run.
Another way in which developers can reduce their carbon footprint whilst reducing their operating cost is by improving the efficiency of their buildings. This can be done through replacing faucets with water-saving fittings or installing a greywater system. Moreover, developers can ensure their buildings are constructed with adequate insulation and ventilation in order to reduce operating costs and energy consumption. Buildings that are well ventilated will consume less energy on cooling (or heating).
Cost-Savings
There are a number of reasons why property developers would choose to reduce their carbon footprint and focus on using sustainable and green building practices. And, as you can see, there is often an overlap between environmental sustainability and cost-saving. A good example of this is the replacement of halogen bulbs with LED lighting. This reduces the energy consumption of the building which, in turn, reduces the monthly electricity bill. It is important to note that many of the energy saving measures require an initial capital outlay, which is likely to have a negative impact on developer’s short term cash flow. In addition to this, there are various grading systems used to grade the efficiency of buildings. Buildings with a higher grading are more likely to be fully tenanted. In this way sustainability can have a direct impact on profitability
Conclusion
Given the increasing importance placed on sustainability, it is vital for property developers and investors to understand Green Building Practices. As previously mentioned, by improving the efficiency of their building, developers can decrease their costs and increase their occupancy.
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