Sustainability and Energy Performance in the Real Estate Market

7 Pages Posted: 19 Sep 2017 Last revised: 13 Nov 2018

See all articles by Andrea Ciaramella

Andrea Ciaramella

Polytecnic of Milan, Department of Architecture Built Environment and Construction Engineering -ABC

Date Written: 2016

Abstract

One of the main economic benefits associated with the sustainable character of buildings is certainly the reduced use and energy consumption. The savings can be very significant, especially when you consider that a non-residential building, energy-efficient point of view, can be achieved a power savings of 30% (Kats, 2003). This, combined with the rising energy prices and growing awareness of environmental issues, has gradually shifted the demand towards buildings with good sustainable features; as a result, the concept of "sustainability" has become a real "driver" for designers (Turner and Frankel, 2008).

However, it is appropriate and interesting to understand whether and to what extent a general trend, widely shared, is recognized by the market in terms of value.

To simplify, it is appropriate to distinguish between the evidence of statistical data and considerations that have significant but only qualitative characteristics; then highlight statistics that demonstrate the relationship between the buildings performance in terms of sustainability, and the corresponding market value and, at the same time, raise the motivation and guidance of end users and investors to see if the market can push towards sustainability because of there issues such as economic benefit and convenience, and not only opportunities and responsibilities.

Keywords: building performance, energy performance, market value, sustainability

Suggested Citation

Ciaramella, Andrea, Sustainability and Energy Performance in the Real Estate Market (2016). International Journal of Environmental Science & Sustainable Development, Vol. 1, No. 1, 2016, Available at SSRN: https://ssrn.com/abstract=3037950

Andrea Ciaramella (Contact Author)

Polytecnic of Milan, Department of Architecture Built Environment and Construction Engineering -ABC ( email )

Milan
Italy

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