The financial benefits of green buildings

Most people believe the costs involved with green buildings are significantly higher than conventional properties.

But this isn’t the case. Green buildings only cost a fraction more to build than conventional buildings – plus, there are several significant financial benefits involved that make them more cost-effective to own and occupy over the long term.

In this article, we’ll explore the financial benefits of green buildings in further detail. But first, what exactly are green buildings?

What are green buildings?

Green buildings are properties that have a lower carbon footprint. This special type of building is built with this purpose in mind, using clever features, infrastructure, and technology to lower emissions – all while providing full amenities to the occupants.

Sustainable buildings are designed in such a way as to minimise their impact on the environment. In many cases, this is achieved through the implementation of renewable energy sources. But it can also mean more fundamental energy efficiency improvements, such as better insulation and window glazing.

Another important factor in green buildings is the choice of materials to use in the first place.

What are green building materials?

Green building materials are materials with a low impact on the environment. Each material builds up its own carbon footprint before it ever gets to the development site, using energy throughout its lifecycle from manufacturing to installation. Selecting sustainable materials like plywood that have low carbon footprints helps developers to make housing more sustainable.

What are the financial benefits of green buildings?

Amid a climate crisis that’s intensifying each year, green buildings offer more sustainable property solutions. Yet they also offer significant financial benefits for the businesses that own and use them. The most significant of these include:

  • Lower operating costs

Energy-efficient designs and the usage of green building materials makes for more efficient use of energy and water. In turn, this allows occupants to spend less on water and energy bills.

Green buildings also require less maintenance. Sustainable building materials are typically more durable, helping green houses to look and function better for longer. This longer lifespan tends to result in a much shorter repair bill.

  • Higher asset value

Buyers are increasingly seeing the benefits that sustainable homes provide. Because of this, green buildings are highly sought after. But since there’s still a relatively small supply, they attract higher prices than their traditional counterparts.

  • Higher occupancy rates and rent

Higher asset value isn’t the only consequence of the difference between market demand and supply for green buildings. It’s also far easier to find and attract tenants compared to finding them for conventional buildings. Moreover, tenants are typically willing to pay higher amounts in light of the greater value that they’ll get from renting green premises.

Eco-friendly and cost-effective

In the discussion around green buildings, the focus is usually placed on their lower impact on the environment. After reading this article, you should know that the financial benefits that green buildings can have for the businesses that own and occupy them are just as important.


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