The real estate industry is constantly evolving based on numerous factors and currently sustainability is one of them. This evolution is powered by buyer preferences, environmental concerns, amongst other trends. Sustainable practices are now becoming essential, and this is changing how houses are being designed and built. In this article, we’ll have a look at the effect this has had on the industry.
Owner and Tenant Expectations
Sustainability has been a growing concern across all industry for the past number of years as they try to be more ‘green’. Mattel, for one, has committed to creating more environmentally friendly products, while clothing giant Zara has launched a repair and resell platform with sustainability in mind. We even see measures taken in iGaming. The online casino sector is growing rapidly and offers a wide array of options from table games like poker and blackjack, as well as pages that offer blackjack rules for those who want to learn more about one of the oldest table games. However, this growth means that that online gaming uses 34 terawatt hours of electricity per year, as estimated by the NRDC. For this reason, some gaming companies are now employing sustainable practices, such as energy-saving, to safeguard the future of the industry.
In the real estate sector, when it comes to buying or renting, sustainability is influencing where we live. People prioritise areas where they see sustainable practices that align with their values. Features such as electric vehicle facilities or solar panels are likely to attract buyers, as well as green spaces. In the last couple of decades, buyers and renters have educated themselves on environmental practices and make decisions based on them.
Green Building and Eco-Friendly Design
It’s not only the buyers that are focusing on sustainability, but government legislation has meant that developers are adopting green practices too. Materials that are environmentally friendly, energy-efficient technology and designs that might reduce carbon footprints are used in construction. With the introduction of certain certifications like Leadership in Energy and Environmental Design, there are now benchmarks that encourage eco-friendly building practices that can, for example, save water or provide better insulation. These advancements not only appeal to the buyers’ eco-consciousness but also the cost-saving side of things.
The Investment Case for Sustainability
On the investing side of things, this move towards sustainability poses some interesting questions about profitability and financial challenges. On one hand, buildings that are more efficient will command higher resale values and attract premium tenants. Moreover, governments are increasingly offering grants and other subsidies to buyers or those who want to make energy-efficient improvements to where they live.
On the other hand, retrofitting properties to improve their environmental ratings can be expensive and time-consuming, in some cases not adding much value to the property. For investors, the important goal is to strike a balance that allows them to make a profit in an increasingly competitive market.
Sustainability is the order of the day in the real estate sector. So long as governments, and maybe more importantly, buyers and renters, have it at the forefront of their thoughts when looking at a property, it should remain that way for the coming years.
