Today Landmark Advisory, one of the leading real estate consultancy companies in the Middle East, released the results of its first green building survey and report. The survey assessed the attitudes of investors and stakeholders in the real estate industry on the feasibility of developing and selling green buildings in the UAE.
Conducted in conjunction with Cityscape Intelligence, the survey sampled primarily responses from institutional stakeholders in the real estate industry including developers, investors, property managers, and analysts. Respondents included UAE residents as well as investors and other stakeholders currently living abroad.
“Through initiatives such as Estidama and Masdar City, it is clear that considerable progress is being made in sustainable real estate, particularly in Abu Dhabi. However, we felt it was important to understand the perspective of various industry stakeholders including their awareness of the various issues surrounding green buildings as well as their opinions regarding the potential demand drivers for green real estate in the UAE,” said Ms. Jesse Downs, Director of Research and Advisory, Landmark Advisory.
Chris Speller, Cityscape Group Director added: “It is vital for the Real Estate market especially in the current economic climate to obtain verified information on how the industry is developing and how it will progress in the future. The first Green Build Survey is an example of the type of analysis that is essential to ensure we understand the focuses and key objectives required to move forward.”
The survey findings highlighted that the vast majority of those interviewed have a grasp on the concept of green buildings with approximately 96% of respondents reporting an understanding of what a green building is. “Of course, this does not test actual understanding, but rather self assessment of knowledge, which is subjective. While this is a very basic question to ask, it is one potential indication of awareness of sustainability in the real estate market. Fostering awareness through education is the critical first step in building a sustainable property market,” explained Ms.Downs.
The candidates who took part in the survey revealed that the factors they most often associate with green buildings include environmental friendliness, lower utility bills and better design. When asked their reasons for wanting to establish an office in a green building, respondents cited similar reasons such as environmental friendliness and lower utility bills in addition to health benefits for employees.
Based on the results, there is a clear distinction between building new green developments and retrofitting existing buildings. When asked about potential implementation of green building regulation that would require new buildings to achieve a minimum green standard, 34% of respondents reported this should be put into practice immediately. However, respondents also stated that the developers are likely to find it feasible to build green within 2-3 years.
In contrast, respondents reported that any regulation implementing a minimum green standard for the retrofitting of existing buildings should only be put into operation in 2-3 years. Commenting on this, Ms. Downs said: “Implementing green development regulation locally is less contentious than green retrofitting regulation; this is most likely because of the current state of the UAE real estate market. Essentially any green development regulation will have limited impact in the short to medium term because the development market will be extremely restricted over this period. Regardless, implementing both green development and retrofitting regulation is critical for improving the long term sustainability of UAE’s real estate market.”
