The reduction of carbon emissions from real estate is what the planet needs at the present moment in order to sustain the overwhelming amount of heat radiated from built spaces into the atmosphere. Therefore it’s in the domain of real estate developers, investors, and home buyers to systematically move towards eco-consciousness. Let’s dive deep into understanding what is Green Real Estate, its environmental benefits, its economic advantage, and the ESG factors.
WHAT IS GREEN REAL ESTATE?
Green Real Estate adheres to green building principles. This green plan for residential and commercial buildings is reached by adhering to adaptation to local contexts – and demands from local living infrastructure needs. This is an action plan taken to decarbonization of buildings, while also building newer ones that ensure meeting the green promise of sustainable living. Even though this building and maintaining it comes at a premium and is a huge boon in luxury real estate, its acceptance is much needed to promote well-being.
THE NEW LANGUAGE OF BENEFITS
Building and designing real estate that contributes to value creation and value preservation is key to Green Real Estate. These buildings and valued real estate are integrated into the community and are smart and connected. By natural environments seamlessly integrating into the building space, these Green Real Estate create a harmonious living environment. Some of the ways to reduce carbon footprint in building spaces include efficient heating, ventilation, and lighting systems. Along with this energy-efficient systems are also put into place like solar panels, geothermal heating, etc.
THE ECONOMIC ADVANTAGE OF GREEN REAL ESTATE INVESTING
The conversations around green real estate have shifted to the premise of the “brown discount”. This means that in the coming days, the buildings that do not live up to the growing demands of environmental standards will be seen as less valuable real estate. Therefore with the long-term plan in view, the economic advantages of Green Real Estate are wide-ranging. We are witnessing signs of it already in the luxury real estate market, however, the demand for such real estate will only rise in the coming days.
ENVIRONMENTAL, SOCIAL, AND GOVERNANCE (ESG) FACTORS IN GREEN REAL ESTATE INVESTING
The residents of Green Real Estate prioritize renewable energy sources, efficient water management systems, and built quality assurance with environment-friendly materials. Some of the other investments are social responsibility and community engagement. Luxury real estate companies are investing widely in Green Real Estate. They ensure good governance and professional transparency thus enforcing credibility and trust among shareholders.
Considering all the factors that make Green Real Estate investing valuable, there is no denying the complex, timely, and valued process requires significant enterprise by all the stakeholders – the real estate developers, the real estate investor, and the consumer. Therefore a roadmap that we can follow in the future, to get real estate portfolios to reach the green threshold and achieve the brown discount
