Ramboll report finds clients underestimate economic value of sustainability

publication coverA Ramboll study indicates that rental yield and property values are underrated, as developers and investors underestimate the value of producing sustainable buildings.

In the Study Ramboll writes:

The design and construction of buildings has a fundamental impact on people, communities and on our natural environment. Understanding how we can deliver buildings that enable people and businesses to flourish and grow, and simultaneously have a positive impact on our climate and environment is one of the key issues for our generation…

…  increasingly the respondents reported that their current and future projects could be considered sustainable. In 2017, 5% of the respondents stated that none of their current projects could be considered sustainable, whilst two years later the number was down to 0%. Looking ahead, 57% of respondents stated that they expected more than half of their future projects to be sustainable. Sustainability is becoming mainstream.

In our survey, Health and Well- being emerged as an important trend for sustainable buildings, underlining the liveability aspect of a building as an important factor. Life Cycle Thinking is still the most important trend, closely followed by Carbon Neutrality, and these are driven by a strong push from the EU and national policies aiming to limit emissions throughout the life cycle of a building.

When asked if sustainable buildings are a good investment, close to 50% of all respondents have little or no insight if sustainable buildings cost more to build, if they have reduced operational cost or if they trade at a premium. It is clear there  is a lack of hard evidence to show whether sustainable buildings yield a positive return on investment. Addressing this knowledge gap will be vital for accelerating the uptake of sustainable buildings.

Missing facts on cost-benefits
37% of the property owners didn’t know if sustainability features increase the property value of their building. 56% of the property owners have no knowledge of the impact on vacancy rates. 41% have no knowledge of the impact on rent level.

31% of them have no knowledge of the operating costs of sustainable versus non-sustainable buildings….

How the study was conducted
The data for the Sustainable Building Market Survey 2019 was collected through an online survey of real estate and construction (REC) industry professionals: property owners, investors, contractors and tenants as well

as industry peers and service providers. The aim of the survey
is to gather experiences and opinions relating to sustainable business operations, green building and construction. The survey is a self-assessment – all replies are based on the respondents’ own experiences. The questionnaire consists of 37 questions (excluding background questions).

The survey was conducted in November-December 2018, using Ramboll’s SurveyXact online survey tool. The questionnaire was sent as an e-mail link to REC industry operators in Finland, Sweden, Denmark, Iceland and the UK. It was also possible to participate in the survey through social media, as the survey was promoted on Ramboll’s website, LinkedIn and Facebook pages.

Download the report

 

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