Eco property sector booming despite market downturn

In spite of a general downturn in the property markets of developed countries, eco property appears to be back and stronger than ever.

When Brazil announces an eco property investment it is expected, but when the United Kingdom does, it is surprising.

This was the scene last week as planning for an eco resort to be built in Brazil gained a lot of momentum due to increased early-bird investment in the surrounding land. The heavy entry level investment was very unexpected and has lent a lot of momentum to the eco property effort in general. In light of this development, it is reported that many other property developers working in Brazil are already planning similar resorts in different areas.

However, eco property booms are to be expected in Brazil, a country that is experiencing great growth in terms of the overall property market and in particular development that gives precedence to ecologically friendly construction. But when such interest is spotted in a developed country as the United Kingdom, it is enough to surprise most analysts.

The United Kingdom has something that Brazil doesn't, however. It has an affluent upper class that is very conscientious about environmental protection and issues related to that field. Referred to by the Times Online as being a class of "affluent eco-worriers", it is these people that are primarily driving interest in eco property in the developed countries of the world.

It seems that people do have to have money in order to act on a belief in eco property. However, as a recent report released by Smart Money has suggested, an eco home could cost anywhere between 3-5 per cent more than a conventional home of the same size and amenities regardless of where in the world it is located.

However, the same report also says that the price differential used to be 11-25 per cent, so there has definitely been some downward mobility in pricing of eco property. That mobility has yet to translate into any real demand and analysts are divided in opinion on whether it will happen any time soon.