Companies focused on sustainability in real estate design energy-efficient buildings using sustainable materials. These buildings integrate renewable energy sources like solar power, while also reducing water usage and improving waste management. Sustainable designs do more than help the environment: they also enhance the wellbeing of those who live and work in them. Join Lew Geffen Sotheby’s International Realty as we take a deep dive into sustainability in real estate.
In this guide you’ll discover:
The meaning of sustainability in real estate
Sustainability in real estate is about designing, constructing and operating buildings and developments in ways that minimise their environmental impact and enhance the quality of life for those living and working in the space. It focuses on energy efficiency, conserving resources and being environmentally friendly — all while supporting long-term economic and social goals.
The simplest way to explain sustainability in real estate is to run through the seven principles that have been introduced to the industry after the publication of documents such as the Building to Net Zero Scheme and the Paris Agreement of 2015.
1. Sustainable design
Often referred to as “green design”, this approach focuses on constructing with the goal of reducing or avoiding harm to the environment. Adopting this philosophy does more than offer support for net-zero goals: it offers long-term significant benefits for businesses and homeowners. These include cost savings and lower energy use.
2. Durability
This principle stresses using strong, long-lasting materials and construction methods that can last the test of time. By focusing on durability, we cut down on the need for future repairs or replacements. This, in turn, not only prolongs a building’s life but also reduces its environmental impact in the long run. One of the critical components of durability is ensuring the use of the right materials.
3. Energy efficiency
Energy efficiency concerns focus on design methods and strategies that aim to reduce energy consumption throughout the planning, construction and maintenance stages of construction. It also includes considerations around the transportation of people and materials.
4. Waste reduction
Waste reduction involves consistently applying methods and strategies to minimise waste throughout the construction process. It also encourages recycling and the use of recycled materials, while advocating for retrofitting instead of new construction whenever possible. Sustainable goals are pushing to reset the industry’s prevailing “demolish and rebuild” mindset and replace it with a circular construction approach.
5. Indoor air quality
Sustainable design focuses on enhancing indoor air quality to create healthier and more comfortable living spaces. With the rise of climate control systems, natural ventilation often gets overlooked. While the effectiveness of natural airflow depends on the location, there are various design elements that can improve ventilation without the use of HVAC systems.
6. Water conservation
Minimising the use of water during material production processes and construction is another focus for sustainable developers. The use of rainwater harvesting systems, low-flow fixtures and efficient irrigation make a marked difference to water consumption in the construction industry.
7. Sustainable building materials
Building materials that have been created using renewable or recycled materials are increasingly popular globally.
Simply put, sustainability in real estate involves adopting practices and principles designed to reduce the environmental impact of properties and communities, while simultaneously fostering economic growth and contributing to social well-being.
Green building materials and energy-efficient design principles
Globally, an array of green building materials — as well as green building practices — have become more widely used as sustainability has risen on the agenda. Bamboo, cork, reclaimed wood, recycled steel, hempcrete and straw bales are just some of the substrates leading the revolution.
Thanks to its versatility, rapid growth and outstanding strength-to-weight ratio, bamboo is an ideal solution for many construction projects, including flooring, roofing, concrete reinforcement and even scaffolding.
Cork has many advantages for construction. Topping the list is its fire-retardant, water-resistant nature. It is becoming a popular choice for flooring and insulation.
Reclaimed wood brings both character and conservation to any eco-friendly construction. It comes from old buildings and structures, which helps to protect forests because there is a lower demand for freshly harvested timber. The texture adds charm and warmth to spaces, making it a popular choice for flooring, furniture and decorative features. And the bonus is that if wood is repurposed, it doesn’t end up in a landfill.
One of the factors that makes recycled steel so efficient is that it’s a substrate that can be recycled over and over again, without ever losing its strength. Some of its key applications include structural framing, roofing, foundation reinforcements, doors and window frames, as well as various outdoor features.
Hempcrete is expected to become increasingly popular as hemp’s usage becomes more common and the prices start to drop. Its main sustainability advantage is that it absorbs more carbon dioxide than it emits during its life cycle. Hempcrete can be a great insulator for walls, floors and roofs. Its natural appearance can also serve as a finish for interior walls.
Contrary to fairy tales, it would take far more than the breath of a big bad wolf to bring down a house made of straw. This point is raised by Green Building Africa, which also explains that straw can be compacted into rectangular bales, and this can be used as fillers or even self-supporting walls. Straw can also be used as a sealing and insulation material.
Energy-efficiency in homes has become a buzzphrase in sustainability circles. Various strategies can be undertaken — either during a build or a later stage — to ensure that your home is as energy-efficient as possible. First on the list is proper insulation, which helps to create a consistent year-round temperature in the home, thus minimising the need for either heating or air conditioning. Double or triple-glazed windows add to the impact of insulation and further reduce your reliance on artificial heating or cooling. At the design phase, homes should be positioned to maximise natural light so that solar panels can capture and store Mother Nature’s energy. Correct positioning also helps to ensure that the home requires minimal artificial lighting and maximises renewable energy integration.
Water efficiency is another important factor to bear in mind. Installing low-flow fixtures, incorporating rainwater harvesting systems and using water-efficient appliances can significantly reduce your water and energy consumption.
The benefits of sustainability for real estate investors and developers
Sustainability is no longer just a buzzword: it has become a strategic imperative for investors. While regulatory frameworks may not be tightening up in South Africa at the speed at which they are globally, sustainability is still becoming a necessity for companies and brands which wish to be held in high regard. Sustainable developments can also help towards the achievement of corporate goals such as decarbonisation and net zero.
Green real estate comes with an assortment of benefits, some of the main ones being higher market prices and rental rates. Sustainable properties are also likely to attract (and retain) high-quality tenants who will look after your property well and are willing to pay more for the privilege of doing so.
An article published by Cliffe Dekker Hofmeyr points out that sustainability is an increasing priority among purchasers and tenants alike. There is therefore a strong financial incentive for developers and investors to integrate green practices into their builds. The fact that modern buyers (especially those in Gen Z) are looking for residential and commercial spaces that align with their values. Such investors are naturally drawn to homes and buildings that have been designed with sustainability on the agenda — and this in turn pushes up the value of these properties.
The article also points out that developers who build in line with these values not only create highly desirable assets: they also establish a reputation as forward thinkers and industry leaders. Property owners and developers stand to benefit from consumers’ ongoing gravitation towards companies and brands that focus not just on profit, but on the profit/people/planet trifecta.
Economically speaking, sustainability can help to reduce operating costs in the long run. Green buildings tend to have lower utility bills and maintenance costs due to energy-efficient systems and high-quality materials. Factors such as improved building ventilation, optimised lighting and recycled water systems can lead to lower operating costs and happy living environments.
Simply put, considering real estate through a sustainability lens can create a competitive advantage and assist in the value-creation process. Added to this, thanks to the principles of biophilic design, aspects of nature can become part of your overarching design philosophy.
Biophilic design...and why it's so popular
Biophilic design is a design and construction philosophy that addresses the need for nature in people’s daily lives. It simultaneously enhances the aesthetic appeal of spaces and meets the expanding need for healthier, more sustainable homes and working environments.
If sustainability relates to conserving the environment, biophilic design relates to making the environment part of our infrastructure. It’s a set of ideas based on the idea that humans have an inherent need to connect with nature, and when that connection is fostered, it can enhance well-being, creativity and productivity.
Biophilic design ties into the idea of sustainability with its focus on natural materials, maximisation of natural light and incorporation of indoor plants and green walls. Through these considerations, biophilic design reduces reliance on artificial elements, lowers energy consumption and contributes to overall sustainability.
The United Kingdom’s University College of Estate Management has put together a list of 15 real-world examples of biophilic architecture. Many of these examples provide case studies of sustainability at work as well. For example, London’s Barbican Centre boasts its own conservatory, with 1,500 species of plants and trees. Another great example cited is the Bosco Verticale, a building complex in Milan, Italy. The complex is covered by 20,000 plants, which serve to absorb carbon dioxide and improve air quality.
A third shining example is the Vibes Office in Ho Chi Minh City, Vietnam. Bamboo sunshade skin has been used in the production process to reduce thermal radiation and thus minimise energy consumption. A final example of sustainability and biophilic design working hand in hand is Singapore’s Khoo Teck Puat Hospital, where walls have been designed to channel the wind, enhancing the airflow of the building by at least 20%.
Sustainability is perhaps the most significant benefit of biophilic design. Other benefits include enhanced mental wellbeing, improved physical health, increased productivity and heightened creativity.
Case studies: iconic sustainable developments around the world
One Angel Square by the Co-op Group | Flickr | CC BY 2.0 | https://tinyurl.com/277z7aya
Globally, there are some shining examples of sustainably built structures that serve their owners, their residents and their planet. A first great example is the fourth tallest building in Mexico City: the Torre Reforma. The structure’s concrete walls reduce the heat entering the building, while the slimline design allows natural light to infiltrate the entire place. Automated controls open windows before sunrise, allowing cooler air to infiltrate the space. The building uses various modern water conservation systems, including water reuse, rainwater collection and advanced wastewater treatment.
Another remarkable example can be found in the home of Ghanaian-born architect Joe Osae-Addo. This Accra-based home was built using materials found in the immediate vicinity, including timber and mud. To circumvent a need for air conditioning, the structure was raised three feet off the ground to allow under-floor cooling. The home has also been constructed with floor-to-ceiling windows to remove the need for artificial cooling. To create a free flow of light and air, there are no internal corridors in this groundbreaking home.
The Pixel Building in Melbourne, Australia uses onsite wind turbines and a green roof to generate its own power and water — to the extent that the building could be self-sufficient if disconnected from the city’s water supply. The building was constructed using low-carbon concrete (coined as Pixelcrete) and other sustainably sourced building materials.
One Angel Square in Manchester, England is renowned as one of Europe’s most sustainable buildings. The building is powered using biofuel that’s made from rapeseed oil — and this oil is harvested on farmland owned by the co-operative that owns One Angel Square. This approach has led to exceptionally low carbon emissions and energy consumption. The building also boasts a double-skinned facade to minimise artificial heating and cooling requirements.
The Marco Polo Tower in Hamburg, Germany has explored sustainability just as its namesake explored the world in the 13th century. Each storey of this apartment building turns a few degrees away from the one below it, forming an axis. This provides residents with natural protection from direct sunlight, thus negating the need for air conditioning.
Closer to home, The Fynbos in Cape Town has been touted as Africa’s first biophilic building and a space where “the divide between nature and built blurs”. A vertical garden stretches across the height of the building, with all the plants being indigenous to the Cape. The building uses solar PV panels for power and cantilevered balconies enable rainwater harvesting.
Your home should inspire you
Perhaps the best way to be inspired by your home is to invest in a home designed to serve the planet rather than damage it. Many South African properties boast sustainability features like solar power, rainwater harvesting and intelligent design. If you’re interested in investing in such a home, get in touch with the team from Lew Geffen Sotheby’s International Realty.
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