Green buildings are helping the real estate industry create a more sustainable future. With buildings accounting for 38% of all energy-related greenhouse gas emissions, business leaders must play an important role in reducing global real estate emissions.

One of the most significant changes is the emphasis on sustainable buildings. Consumers everywhere place a higher value on environmentally friendly products and services than ever before, and government initiatives encourage them. Green real estate, which was once considered a niche market, may soon come to dominate the market.

Green building is reshaping the real estate market, from sustainable building materials to renewable energy. Here’s a closer look at how it will affect the industry.

INDEX

1. Lower Long Term Ownership Costs

2. Increased Diversity of Green Buildings and their Materials

3. Increased Independence

4. Opportunities for New Construction with Green Buildings

1. Lower Long-Term Ownership Costs

One of the most significant effects of the green trend on real estate will be lower ownership costs. Sustainability was once prohibitively expensive, but times have changed. In most parts of the world, wind and solar power are now less expensive than fossil fuels.

Buildings with integrated solar panels or wind turbines will offer residents more affordable energy. Some properties may be more expensive up front as a result of these features, but the overall cost of ownership will be lower. This affordability will entice new homeowners, resulting in increased sales and making housing more accessible.

Green building materials can help to reduce costs even further by making buildings more energy efficient. Traditional fibreglass insulation leaks 30% of heat and air conditioning, but foam insulation is far more efficient. These materials allow more air to enter the house, lowering heating and cooling costs and making homes more affordable.

2. Increased Diversity of Green Buildings and their Materials

Most traditional structures are made of only a few materials, such as concrete, wood, brick, and steel. The sustainable real estate movement provides buyers with a plethora of new green building materials to choose from. Many of these also have non-environmental advantages.

High-tech materials are a burgeoning and promising industry segment. Smart glass, for example, modifies its thermal properties in response to heating and cooling trends in the building. With such a wide range of materials available, green homes can appeal to a broader range of market segments, meeting the needs of a diverse public.

3. Increased Independence

Another benefit of built-in renewable energy generation (such as geothermal energy) is that it provides property owners with greater independence. Solar panels and wind turbines enable residents to obtain some or all of their energy from the environment rather than from utility companies. In addition to the savings, this gives building owners independence from the power company.

When building owners are not reliant on utility companies, they can avoid contracts and other constraints. Residents will have more freedom, which is especially important in commercial buildings because businesses are likely to have loftier goals than average homeowners. Utility companies impose limits on expansion, but renewables do not.

4. Opportunities for New Construction with Green Buildings

Construction firms will have a plethora of new opportunities as the green real estate market continues to soar. While homeowners can retrofit existing structures with sustainable technologies and materials, an entirely green home usually necessitates the construction of a new structure. Rising demand for green houses will provide construction companies with a plethora of potential projects.

New construction project demand will shift. Green building techniques and sustainable certifications will make construction firms far more valuable in the coming years. Construction will become more environmentally friendly as the real estate market greens.

It may take some time, but if current trends continue, green buildings could become the norm for all new developments.