Sustainability is a concern that is on everyone’s not only mind but one that is here to stay in a world where global warming and climate change headlines have captured more and more media presence and the top industrial nations convene to debate climate.
The demand for sustainable living has grown significantly in recent years, extending its influence to the luxury housing market. “Green Growth” is one of the reemerging trends in the neighborhood real estate market. More clients and market demand are shifting toward sustainable building as the business community, real estate investors, and even tenants start to modify their priorities in safeguarding their health and safety while inside their workplace. Our impact on the environment is becoming increasingly concerning as human civilization advances. LEED (Leadership in Energy and Environmental Design) and WELL Building Standard certifications have emerged as major indicators of a luxury home development’s dedication to environmental and human well-being, indicating that sustainability has become a key consideration in these luxury housing.
Adoption of sustainability certifications
The use of sustainability certificates in luxury housing developments has been frequently developing. To accomplish the rising demands of environmentally attentive consumers, developers progressively understand the importance of implementing sustainable techniques into their buildings. LEED and WELL are two of the most extensively identified certifications in the market, attributing that sustainability has become a key application in luxury homes. The number of LEED-certified luxury housing developments in the United States has heightened greatly in recent years, according to the United States Green Building Council (USGBC) (USGBC, 2021). This tendency proposes that property developers are actively seeking certification to promote the appeal and marketability of their houses. Both certifications provide recommendations for designing and constructing energy-efficient, environmentally-friendly, and occupant-friendly buildings.
However, some opponents claim that implementing sustainability certifications is insufficient to address the numerous challenges confronting the construction and design industry. Factors such as a lack of sustainable building materials, obsolete building codes, and industry insider reluctance to change can all contribute to a poor adoption rate for these certifications. Despite this, many experts think that sustainability certifications are vital steps toward a more sustainable and ecologically conscious built environment.
LEED and WELL certifications benefits
Sustainability certificates provide numerous benefits for luxury housing developments. They give the project an aggressive advantage by distinguishing it from standard housing choices. LEED or WELL certifications serve as a sign of status and exclusivity, attracting discerning customers who value sustainable living. Furthermore, the incorporation of sustainable features and practices into luxury housing developments reduces energy consumption, lowers operating costs, and contributes to a healthier living environment (USGBC, 2021). These advantages correspond to the desires of luxury homeowners, who explore not just magnificence but also a sustainable lifestyle.
Furthermore, environmental certificates intensify the overall value of luxury housing properties. Utilizing sustainable design principles and technologies extends the development’s lifespan and durability, which ensures a higher return on investment. According to studies, LEED-certified luxury housing complexes attract greater resale and rental rates than non-certified residences (USGBC, 2021). This financial incentive gives developers a lot of motivation to earn sustainability certifications. The certifications can encourage innovation in the sector and help establish a baseline for environmental considerations. The pursuit of these certifications by developers should continue, but they should also be held responsible for their wider environmental impact and social obligations.
Implementing sustainability certifications faces challenges
Although the use of sustainability certificates in luxury home complexes is accelerated, there are obstacles that developers must overcome. The main challenge is the extra consumption involved in implementing sustainable features and technologies. It frequently costs more upfront to include environmentally friendly materials, renewable energy sources, and energy-efficient systems (USGBC, 2021). Developers working in fiercely competitive luxury housing markets may find this to be a challenge.
The complexity of certification procedures is another challenge as well. It takes careful planning, cooperation with numerous stakeholders, and adherence to certain norms and criteria to achieve LEED or WELL certifications. These procedures can be time-consuming and demandable, necessitating the allocation of extra resources by developers to guarantee compliance. Another typical challenge in achieving sustainability certifications is resistance to change. Because of worries about disruption, higher expenses, and uncertainty over return on investment, a business may be hesitant to change current processes and invest in sustainable technologies. Despite the possibility that LEED and WELL certifications may enhance environmental efficiency and occupant well-being, this reluctance may prevent their widespread adoption.
However, the advantages of certification in terms of value and marketability outweigh the implementation-related challenges.
Finally, environmental certificates have emerged as an important factor in the luxury property market. Certifications such as LEED or WELL are becoming more popular as developers grasp the benefits they provide in terms of market differentiation, cost savings, and enhanced property prices. While there are barriers in terms of initial expenses and complicated certification processes, the long-term benefits outweigh these obstacles. As the importance of sustainability grows, luxury housing developments that prioritize and invest in sustainability certifications will not only match the expectations of environmentally concerned consumers but will also gain a competitive advantage in the market.
References:
Gardetti, M. A., & Gir6n, M. E. [2017). Sustainable Luxury and Social Entrepreneurship. Routledge. https://doi.org/70.4324 / 978L35728624
Hong, H.; Wang, S.; Wu, Z.Z. Implementing sustainable management in construction industry, Advanced Materials Research, Trans Tech Publ: 2011; pp. 85-88.
Kapferer, I. N., & Michaut, A. [2015). Luxury and sustainability: a common future? The match depends on how consumers define luxury. Luxury Research J., 1(L), 3.
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Robichaud, L.B.; Anantatmula, V.S. Greening project management practices for sustainable construction. J Manage Eng 2010, 27, 48-57.
U.S. Green Building Council (USGBC). (2021). LEED in Motion: Residential. Retrieved from https://www.usgbc.org/resources/leed-motion-residential
