Real estate is going through a lot of change, especially so it can comply with modern demands such as sustainability and overall improve efficiency. Both sustainability and efficiency go hand in hand, so if real estate achieves one, it will likely be successful with the other. Furthermore, roughly 28% of building operations contribute to global emissions. In fact, the UK, along with residential property, contributed 20% to greenhouse gas emissions, which is a lot for residential properties, especially with how they are supposed to be more efficient.
Thanks to technology, we are now on the right track to becoming net-zero, especially with real estate. Operations are becoming more efficient and sustainable, helping to reduce costs and overall consumption, without worrying about sacrificing comfort. However, it isn’t just the technology being used today which helps become sustainable; it also includes the materials used for building the property, such as bamboo panels and reused wood.
The Importance of Sustainability in Real Estate
There are a number of reasons why sustainability is so important for real estate. This includes ESG requirements, investor interest and government regulations. ESG is an abbreviation for Environmental, Social and Governance. This is a set of standards which measures a business’s impact on society, the environment and how accountable/ transparent they are. This is something that investors carefully consider before they invest in a company.
As briefly mentioned with ESG, sustainability is also very important to investors. If an investor notices that a company is successful, efficient and sustainable, they are more likely to invest in it. This can be very beneficial for the business itself, as more investors help to grow the company’s success and help it expand.
There are a number of government regulations now in place for the real estate industry, simply because they aim to be net-zero by 2050. A lot needs to be improved in real estate, so it is one of the industries that can take longer than others. Plus, being compliant with the government and considering sustainable upgrades will also help increase the real estate value.
How Smart Technology Helps Improve Sustainability
Smart technology has helped this particular industry. For example, smart lighting and HVAC systems are something that have improved real estate. Smart lighting is essentially motion sensor lights in commercial buildings. On top of this, properties will also set timers for their lights, so they can turn on and off at specific times of the day.
HVAC systems can also automate climate controls to adjust the temperature accordingly in the building. Again, this can be set on a timer or automatically turn off and on when the temperature drops below or goes above a certain temperature. Renewable energy sources are also carefully considered with modern real estate. This includes both wind and solar energy. In fact, there are many high-rise buildings which will install wind turbines on the property to help provide it with energy. The Strata SE1 building in Elephant and Castle is a perfect example.
How Going Green Can Improve ROI for Real Estate
Although sustainability is to be more compliant with local laws and regulations, there are also additional benefits regarding ROI. The reason why some businesses are adopting these techniques is that they aim to be more cost-effective and reduce operational costs. This will also offer tax benefits/ exemptions because the property is sustainable and more eco-conscious.
Not only does it help to cut costs, but it also offers real estate marketing benefits to help gain additional income. Not to mention green-certified badges on products and services, which can help gain more customers or even investors. It is a win-win for everyone.
Benefits That Are Beyond Carbon Reduction
Although the primary goal is to reduce carbon emissions, there are other benefits that come with it. Reducing carbon emissions alone can help significantly in terms of reducing energy bills. This isn’t just for tenants but also for landlords.
There is also the added benefit of improving the health and well-being of the occupants. This is something that many modern businesses are now considering, as improving employees’ well-being will make them more productive, positive and improve punctuality in the workplace.
The final benefit of reducing carbon emissions is the property value. If a building is eco-conscious and more considerate of carbon emissions, green certificates will be awarded to this business. This will attract more investors to the company, along with keeping the building occupied with tenants.
Examples of Sustainable Real Estate
The Edge – Amsterdam
This fantastic building is argued to be the world’s smartest office building. This is because this building alone provides positive energy via solar panels as well as an aquifer energy storage system. As a result of this and other features of this SMART building, it has achieved a BREEAM score of 98.36%.
Bosco Verticale – Milan
Bosco Verticale is also known as “the vertical forest” because it is two residential properties that are covered with over 20,000 trees, shrubs, and plants. Thanks to this ingenious idea, air quality is significantly improved, and it also provides natural insulation. Not to mention that it absorbs roughly 44,000lbs per year of CO2. Additionally, it has a smart irrigation system that uses recycled water along with energy-efficient HVAC systems.
What Does The Future Hold?
Sustainability is essential for modern real estate, and technology is improving and helping businesses reduce their operational costs and enhance sustainable processes. That being said, the future looks very bright for this particular sector. Net-zero buildings will improve significantly with the use of AI integration, and IoT will be implemented on a much larger scale.
Even with vertical transport systems, such as elevators, they can be personalised and be more energy-neutral. Not to mention that they can connect them to renewable energy loops. Again, helping to improve overall operations and reduce costs.
To Conclude
As you can see, there has been a significant increase in real estate buildings becoming more sustainable; however, we are only seeing this more with newly constructed buildings. This needs to be integrated with older buildings, especially commercial properties, as these are far less efficient and produce a lot more greenhouse gases compared to other buildings.
Sustainable technology and the Internet of Things should no longer be an option; it should be the standard that businesses and commercial properties consider. Small upgrades can make a huge difference over the year, such as switching to modern lighting and using HVAC systems. Not to mention lift modernisation to help become more sustainable.